I think it was posted like that so we can get up to speed :)
So in the Carry Trade
Q n. 5: solution states:
(1/87.40) * (1+0.0450) * 86.42 -0.001= 3.23%
Now in the EOC
Q n. 3 solution states:
0.7258 * (1+0.022) * (1/0.7283) - 0.008=1.04%
What is the reason for using the reciprocal of the Current Spot Rate vs Projected Spot Rate?
On Tuesday, August 6, 2013 8:34:48 AM UTC-4, IFT Team wrote: