This is question of Cross rate involving foreign exchange therefore margin need to be adjusted in euro/ pound rate and then divide with Dollar/pound rate. Correct answer should be 0.9619.
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In interest rate parity, it was understood that a country having low interest rates will have currency appreciation. But low interest rates imply more money in people’s hand, which will thereafter cause high inflation in the economy as against the ...
Volume-IV page-67 Question 13 in 3 Months Column Annualised Discount rate on Rupee: As per the solution given in the book: 3.25% My solution as per ICAI’s approach: 3.7256% My solution as per the Right approach: 3.566% Is my answer correct? please refer to my working ...
The Answer does not match the answer and some questions like q12 is not properly framed considering the answer in decimal.
Please see the question attached and the extract of suggested answer In the above question, why for computation of swap loss, forward rate of March i.e. 73.4275 is considered. Whereas we have to consider ...
Sir in Forex Question 27 (forward sums with cross rates) ICAI used to solve the question by adjusting exchange margin in the rupee quote. But now ICAI has rectified the solution through a corrigendum in which they have done the ...
In Q-13 Pg-18 i) Why Upfront fees is calculated on Forex Hedge rate (64) and not on spot rate (65) If payment is done upfront today it should have been taken spot at 65 and then 12% Int should have ...
In this question why we are not calculating proportionate swap points because spot date is 3 September and delivery date is 30th October so it is coming between 1 month and 2 month forward so why we are not proportioning ...
Due date is 4th April. Why Spot(ask) of march (i.e. 73.4275) is used for calculation of swap loss. It should be Option forward of April i.e.73.5675. And therefore swap loss will be [(73.2775-73.5675)*1,00,000] = 29000. Is my answer correct if ...