Casasophia 6/11

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January 3, 2020 at 7:13 pm

osamasyed123
Participant
Sir in the b part why examiner has used purchasing power parity for net present value
And why not do it wiht the same interest rate parity can we do it?

January 4, 2020 at 8:37 am

John Moffat
Keymaster
As I explain in my free lectures, purchasing power parity is used to give an estimate of the future spot rate.
Interest rate parity is used to calculate forward rates.
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