washi sept 2018

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June 4, 2019 at 4:58 pm #518845
ayeshatabani
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hi
why have we chosen the rate 0.7000 in converting cashflows from ard to jpy. why not 0.74000?
June 5, 2019 at 1:48 pm #519109
ayeshatabani
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Sir?
June 5, 2019 at 4:26 pm #519158
John Moffat
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They need to buy ARD for the investment and therefore to convert to JPY we divide by the lower rate (dividing by a higher rate would give a lower cost which cannot be the case!).

I explain how to decide which rate to use in the first of my free lectures on foreign exchange risk management.
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