- This topic has 2 replies, 2 voices, and was last updated 9 years ago by
.
Viewing 3 posts - 1 through 3 (of 3 total)
- Posts
In the article of the above title, the answer of writer explain about how to calculate the Mid-point exchange spot rate, but I cannot understand, pls. help to work it out
In future you should ask in the P4 Ask the Tutor Forum if you want me to answer – this forum is for students to help each other.
The question gives you the rate at time 0 as 0.7810. Since the $ is devaluing at the rate of 5% a year, then at time 1 it will be 95% x 0.7810 = 0.7420.
At time 2 is will be 95% x 0.7420, and so on.
Viewing 3 posts - 1 through 3 (of 3 total)
- You must be logged in to reply to this topic.