Expectations Theory of Forward Exchange Rates

0.01 sec.

Expectations theory of forward exchange rates

A theory of foreign exchange rates that states that the expected future spot foreign exchange rate t periods from now equals the current t-period forward exchange rate.

Pure Expectations Theory

In foreign exchange, a theory that forward exchange rates for delivery at some future date are equal to the spot rates for that date. The theory only functions in the absence of a risk premium. Critics contend that the evidence shows that pure expectations do not occur in actual trading.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
No references found			Exercise Notice Exercise Price Exercise Settlement Amount Exercise Value Exercising the Option exhaust price Exhaustion Exhaustion Gap ExIm Bank Existencias Existing Home Sales Exit Fee Exit Strategy Exogenous Exogenous Uncertainty Exogenous Variable Exordium Clause Exotic Option Expansion Expansion monetaria expansion option Expatriate Expectations Hypothesis Expectations Hypothesis Theories Expectations Index Expectations Theory of Forward Exchange Rates Expectativas inflacionarias Expected Dividend Yield Expected Future Cash Flows Expected Future Return Expected Rate of Inflation Expected Rate of Return Expected Return Expected return on investment Expected Return-Beta Relationship Expected Spot Rate Expected Value Expected Value of Perfect Information Expedited Funds Availability Act Expense Account expense ratio expense stop Expensed expenses Expenses of Sale Expensing Expensive Experian Experience Rating Expert system Expiracion			Expectation value Expectation value Expectation value Expectation Value Quantum Computer Expectation, Mathematical Expectation, Mathematical Expectation-Conditional Maximization Either Expectation-Confirmation Theory Expectation-Driven Event Monitoring Expectation-Maximization Maximum Likelihood Expectation-Maximization Sequential Monte-Carlo Expectation-Maximization Viterbi Algorithm Expectation-Maximization-Based Phase Estimator expectational expectational expectational expectational expectational expectations expectations expectations expectations expectations Expectations Augmented Phillips Curve expectations hypothesis Expectations hypothesis theories Expectations Hypothesis Theory Expectations Index Expectations Index Expectations Theory Expectations Theory of Forward Exchange Rates Expectativas inflacionarias expectative Expectative grace expected expected expected expected expected expected expected Expected A Posteriori Expected Adverse Event Expected Angle Stability Margin Expected Annual Usage expected approach clearance time Expected Approach Time Expected At Completion Expected Average Remaining Service Lifetime Expected Average Reward Rate expected average wholesale price Expected Award Date Expected Basal Energy Expenditure Expected Citation Rate Expected Classification Error Expected Classroom Learning Results Expected Commercial Value Expected Completion Date Expected Connection Date Expected Consequences of Hearing Aid Ownership Expected Cost of Attendance

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.