📊 International Financial Management
Q. Which of the following is not a method of forecasting exchange rate volatility?
  • (A) using the absolute forecast error as a percentage of the realized value.
  • (B) using the volatility of historical exchange rate movements as a forecast for the future.
  • (C) using a time series of volatility patterns in previous periods.
  • (D) deriving the exchange rate's implied standard deviation from the currency option pricing model.
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✅ Correct Answer: (A) using the absolute forecast error as a percentage of the realized value.

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