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I was watching the forward contract in forex module in opentuition. chapter 18.
You were finding the forward rate.
forward rate —1.5264-1.5334sell us$ 150k
calculation shown is
150k/1.5334Previous lectures you were doing with 150k/1.5264 but the above case you did 150k/1.5334.
Did I miss something?
Since we are receiving dollars we divide by the higher rate. Only if we had we been paying dollars would we have divided by the lower rate.
when we receive dollars, we pay dollars to bank for converting to pound. right? the topic is little confusing one.
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