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Future spot rate

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Future spot rate

  • This topic has 2 replies, 2 voices, and was last updated 6 years ago by AvatarJohn Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
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  • June 4, 2019 at 2:31 pm #518789
    Avataralikhakar
    Participant
    • Topics: 186
    • Replies: 79
    • ☆☆☆

    If inflation rate of both countries is given in per year .. And spot rate after 6 months is asked ..do we have to divide the rates by 2 and then use it in the formula ?

    June 4, 2019 at 2:41 pm #518792
    Avataralikhakar
    Participant
    • Topics: 186
    • Replies: 79
    • ☆☆☆

    Ques 25 of 2016 sep/dec exam is asking which one is correct ..
    Why 2nd option “in a weak form efficiency market, share price reacts to new info the day after it is announced” is also not correct ?

    June 4, 2019 at 3:37 pm #518821
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    First question: Yes 🙂

    Second question: The share price will react to new information, but there is no reason whatsoever that it should happen exactly one day after it is announced 🙂

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