Journal Article10.1016/0304-3932(84)90046-1
Forward and spot exchange rates
TL;DR: In this paper, the authors find that most of the variation in forward rates is variation in premium, and the premium and expected future spot rate components of forward rates are negatively correlated, and they conclude that the forward market is not efficient or rational.
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About: This article is published in Journal of Monetary Economics. The article was published on 01 Nov 1984. The article focuses on the topics: Forward exchange rate & Forward premium anomaly.
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Citations
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The electricity market, day-ahead market and futures market
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