- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Chp 23, Eg 4
Qt: Y is due to receive $150,000 in 3 months time.
Spot $/£ 1.5326 – 1.5385
3m forward 0.62 – 0.51 c pm
How much will Y receive?Ans: Forward rate = 1.5385 – 0.0051 = 1.5334
150,000 ÷ 1.5334 = £97,822I don’t understand the 0.0051 figure, why is it not 0.51?
Because it is quoted in cents, and 0.51c is the same as 0.0051 $’s.
I do explain this in the free lectures on this chapter.You should not be using the lecture notes if you are not watching the free lectures. It is in the lectures that I work through all the examples and explain and expand on the notes – they are only lecture notes.
If you are not watching the lectures for any reason then you should study from a Study Text from one of the ACCA approved publishers.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.