Uncovered IRP

CFA Level II Economics
#1

Forward rate to become an unbiased predictor of the future expected spot, Covered and uncovered IRP should hold. Is this correct? Tx

#2

Are you saying that it’s given that the forward rate is an unbiased predictor of the future expected spot rate, or asking if it is?

Covered IRP always holds.

#3

Given the forward rate is an unbiased predictor of the future spot rate

#4

Then uncovered IRP should hold.

#5

Thanks for the prompt reply

#6

You’re welcome.