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In this question, the solution has used the selling rate to convert the premium payable (0.8711). However, since the premium is payable, shouldn’t we convert it at the buying rate instead (0.8707) – since one would buy the foreign currency to make a payment in the foreign currency
Please help me if I’m wrong.
Thanks in Advance.
Please ignore the question – I think I was too sleepy while asking the question 🙂
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