CIMA F3 Evaluation of financial objectives – Foreign exchange rates

Comments

1. janetmiller says

   October 11, 2018 at 2:34 pm

   This has confused me as well. Surely $/£1.50 means $1 = £1.50? I also got £1.47. Would love to know if this is correct and if the above is indeed just a typo.

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2. akeshani says

   July 24, 2018 at 3:06 pm

   I think it is due to typo in the study notes.
   This should have been quoted as £1/$1.5 instead of $1/£1.5.

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3. riar says

   June 26, 2018 at 9:54 am

   In this question, Example 10:

   It is $1/£1.5

   So wouldn’t it be $66.67 for the same product.

   and PPP would be = 1.5 X(1.02/1.04)
   ie, £1.47

   And this means $ has weakened and also coz inflation was higher for US that makes sense.

   Am I wrong? I just got really confused. Thanks in advance!

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