R14 Currency Exchange Rates: Determination and Forecasting

45 views
Skip to first unread message

IFT Team

unread,
Aug 6, 2013, 8:34:48 AM8/6/13
to 2014-l...@googlegroups.com

haider iqbal

unread,
Apr 16, 2014, 5:56:19 AM4/16/14
to 2014-l...@googlegroups.com
Theres something wrong with the sound in Curriculum example number 8 in R14. 

On Tuesday, August 6, 2013 5:34:48 PM UTC+5, IFT Team wrote:

Randall Smith

unread,
Apr 22, 2014, 6:32:29 PM4/22/14
to 2014-l...@googlegroups.com
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:

Reply all
Reply to author
Forward
0 new messages