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Forward contract lecture

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Forward contract lecture

  • This topic has 0 replies, 1 voice, and was last updated 8 years ago by brain33.
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  • August 29, 2016 at 9:54 pm #336118
    brain33
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    • Topics: 9
    • Replies: 7
    • ☆

    Hello Sir
    Lecture forward cotracts
    I understand in exp 3 because x is buying first currency $200,000
    so we devide $200000/1.4910

    I didnot understand in exp 4 why we multiplying
    i know y is receiving and that mean y will sell $ to convert in £
    because selling choose 1.5334
    now my query is when we buy we devide and when we sell we multiply
    Why in this example we deviding inthe place of multiply

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