CIMA F3 Evaluation of financial objectives - Foreign exchange rates
3 Comments
J
janetmiller·
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.
A
akeshani·
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.
R
Ria·
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!
This should have been quoted as £1/$1.5 instead of $1/£1.5.
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!