Question

Which of the following are reasons the forward-rate method is more complex than the spot-rate method in estimating the value?

I. Incomplete data.

II. Extra calculations.

III. The possibility of multiple solutions.

IV. The use of more than one currency in the estimation process.

a) I and II only.

b) I and IV only.

c) II and III only.

d) III and IV only.

Answer

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