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Sir, why are we purchasing Swiss Francs in this question?
The question says that a German question receives Swiss Francs, thus, here the company should buy home currency, i.e., EUR and sell foreign currency, i.e., SFr
You are correct and the examiners answer (which is what is copied into the Revision Kit) is very muddled.
I would not worry about this question at all because it was set by the previous examiner (who was removed because many of his questions (including this one) were ridiculous). The current examiner (who took over in 2010) does not ask questions like this. (Especially the way the spot and forward rates are quoted in the question. This is how they are quoted in real life, but the current examiner never does this 🙂 )
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