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Hai Sir,
Why they want to buy swiss franc? Shouldnt they sell Sfr because they receive Sfr from Swiss sub?You are correct – they are selling SFr, and that is what is happening in the answer. (But they first have to calculate how many Sfr will actually be received since the question says that they will receive the equivalent of €1.5M
This is a very poor question. It was set by the previous examiner and the terminology used in the question should not have been used, and the answer is most confusing. It is one of the reasons that the examiner was changed very quickly!! You are better practicing questions from 2010 onwards – they are the current examiner and more representative of the current questions on this topic 🙂
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