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Dear Sir,
I would like to ask about how to caculate the annual volatility in Q2,b) of Pilot Paper.
The answer have the annual volatility of sterling/EUR = 0.22.
It should come from which stated in the Question: “the monthly volatility of the Euro against sterling is 6.35 per cent”. Howerver I don’t know how it results in 0.22.Thanks for your effort,
Ha
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6.35%*?12=0.22
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6.35%*?12=0.22
Thanks teacher and Serana.
Now I know how to caculate it. However, I don’t know how to caculate the Sterling Euro forward (indirect) 1.4426 (pls see the answer in question 2)Thanks a lot,
Ha
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