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CIMA F3 Evaluation of financial objectives – Foreign exchange rates

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janetmillersays

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.

janetmiller says

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.

akeshani says

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.

riar says

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!