If the forward exchange rate is an unbiased predictor of the expected future spot rate, which of the following is NOT true?
A.
The future spot rate will actually be equal to what the forward rate predicts
B.
The forward premium or discount reflects the expected change in the spot exchange rate
C.
Speculative activity ensures that the forward rate does not diverge too far from the market’s consensus expectation
D.
All of the above are true