1st mock exam question 2 swap bpp kit. Anybody who has done this question? I don’t seem to understand this question at all While calculating exchange rate isn’t Eurozone the base rate becuase the company is from the eurozone ?
You have asked in the Ask the Tutor Forum, and it is always me who will answer in this forum!!
It is irrelevant as to which country the company is in. What matter is the way round that the exchange rate is quoted. Here it is quoted against the $. €0.1430 is equal to $1. Therefore Hb is the Wirtonia inflation rate and Hc is the Eurozone inflation rate.
It will help you to watch my free lectures on this.