0 Nukunj BajajAdvanced Asked: March 29, 20232023-03-29T14:11:38+05:30 2023-03-29T14:11:38+05:30In: 2023 LIVE BATCH (CFA L1) Currency exchange rates 0 Please explain!! Share Sorry, you do not have permission to answer to this question. 1 Answer Oldest narayanchandwani.142@gmail.com The Official Nerd 2023-03-29T14:56:21+05:30Added an answer on March 29, 2023 at 2:56 pm This answer was edited. F/s=1+iA/1+iB. F/1.7550=1.0450/1.03. F=1.7550(1.01456). F=1.7805528 So the quoted forward rate > actual forward rate . So we should buy at 1.7805 and sell at 1.7900 so return =1.7900/1.7805 Option A
F/s=1+iA/1+iB.
F/1.7550=1.0450/1.03.
F=1.7550(1.01456).
F=1.7805528
So the quoted forward rate > actual forward rate .
So we should buy at 1.7805 and sell at 1.7900 so return =1.7900/1.7805
Option A