Assertion: spot rate | /r/HasProperty | f t − s t
Facets:
Source sentences:
text: Fama suggested that slope coefficients in the regressions of the difference between the forward rate and the future spot rate F t − S t + 1 {\displaystyle F_{t}-S_{t+1}} , and the expected change in the spot rate E t ( S t + 1 − S t ) {\displaystyle E_{t}(S_{t+1}-S_{t})} , on the forward-spot differential F t − S t {\displaystyle F_{t}-S_{t}} which are different from zero imply variations over time in both components of the forward-spot differential: the premium and the expected change in the spot rate.