So that ratio, as he says, pi 2over pi 3,

这个比值 π2/π3
has to be exactly the exchange rate that the people are agreeing to today.

刚好就是我们今天定的远期交换利率
That's what pi 2 and pi 3 mean.

这就是π2和π3的意义
If you express it as an interest rate, it's 1 plus the forward interest rate.

如果理解成利率这是1+远期利率
That ratio is 1 i^_t. Okay, any questions about that? Yes?

这个值就是i^t 有问题吗请讲
Student: What happens if your yield curve is downward sloping?

如果收益曲线是朝下方向会怎么样
If the yield curve is downward sloping, yes.

如果收益曲线方向向下是的
Student: Do you agree to give them 1 dollar in year 2,

你同意第二年给他们1元
they give you less than 1 dollar in year 3?

他们第三年给你少于1元吗
Okay, so you've made a little mistake in your premise.

你的前提有个小错误
Good question, but let me phrase your question a little differently,

不错的问题让我改变一下你问的问题
you see the answer to it.

你就会知道答案了