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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › p4 somax plc Kaplan q=19
somax plc kaplan q 19
When calculating UK interest rate using IRP theory, I didn’t understand from where it gets S1 as 2.2982 and S as 2.3273. I checked the question and tried to come up with this figure from the given spot and forward put I failed. Please could u help me quick.
thx in advance
They have used the mid-market rates (which is the average of the buy and sell rates).
So……the mid market spot is (2.3245 + 2.3300) / 2 = 2.3273
(same idea for the six month forward rate)
John no word to thank you, I felt ashamed why I didn’t tried it your way but thank you. you saved my night now I can concentrate on my reading.
You learned a lot from your reply to different people question for the last one year than from BPP plus Kaplan books.
Thank you
You are welcome – and thank you 🙂