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june 2011 casasophia

This topic has 6 replies, 3 voices, and was last updated 9 years ago by John Moffat.

Viewing 7 posts - 1 through 7 (of 7 total)

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May 27, 2014 at 12:32 pm #171151
flippy
Member
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dear sir,
there is a question on the june 2011 past year paper,question (2) casasophia co.
2(c) for the forex swap,Net present value = €23·17m – €21·84m = €1·33m
i would like to know how to get the figure 21.84m? thanks!
May 27, 2014 at 12:45 pm #171153
flippy
Member
- Topics: 26
- Replies: 27
its okay sir,you dont have to reply me anymore..i just figured out the answer!thanks!
May 27, 2014 at 7:55 pm #171256
John Moffat
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Thanks for letting me know – glass you sorted it out 🙂
November 14, 2015 at 1:24 pm #282315
wlta
Member
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Can u enlighten me where this €21.84m get?
November 14, 2015 at 1:55 pm #282318
John Moffat
Keymaster
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It is the MShs 2.64 billion, converted at the expected spot rate in 6 months time.
November 14, 2015 at 2:01 pm #282322
wlta
Member
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- Replies: 27
Dear sir,
How to calculate this expected spot rate in 6 mths time?
Thanks.
November 14, 2015 at 2:30 pm #282333
John Moffat
Keymaster
- Topics: 57
- Replies: 54500
But the examiner has shown the workings for this in his answer!
You use the PPP formula to estimate the spot rate in 12 months time.
Then to get an estimate of the rate in 6 months time, you take the average of the current spot rate and the forecast rate in 12 months.
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