Currency Derivatives and Exchange Rate Forecastability PoorSatisfactoryGoodVery GoodExcellent Be the first. (0 ratings) Log in to rate this article. Financial Analysts Journal July/August 2007 | Vol. 63 | No. 4 | 6 pages Source: CFA InstituteShinhua Liu US$0.00 Member | US$0.00 Candidate | US$15.00 Nonmember Read Abstract By incorporating new information generated by currency derivatives trading, underlying exchange rates should be less forecastable than previously and the underlying currency markets should, therefore, be more efficient. This hypothesis was tested, for the first time, for the period 1982 through 1997 on a clean sample of three major types of currency derivatives launched in two prominent markets. Various statistical tests indicate that following the introduction of the derivative contracts, the underlying exchange rates became more random and the currencies involved tended thus to be priced more efficiently, which supports the hypothesis. Self-test View more information Topics Derivatives | Economics Credits · About the CE Program 1 CE (including 0 SER) Record credits Credits recorded Members, log in to record your credits. Manage CE Credits People who viewed this page also viewed: Top Hedge Fund Investors: Stories, Strategies, and Advice This book chronicles top hedge fund investors that played key roles in the industry, including substantial information on manager sourcing, ... More Credit Suisse Global Wealth Report The "Credit Suisse Global Wealth Report" is a comprehensive study of world wealth that analyzes the world’s entire 200 trillion ... More Credit Suisse Global Wealth Databook This Databook displays the detailed dataset backing the "Credit Suisse Global Wealth Report," the comprehensive study of world ... More Loading ...