Economics - currency forward contract question

aroranidhi2004
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Joined: Thu Oct 16, 2014 4:51 pm

Economics - currency forward contract question

Postby aroranidhi2004 » Fri Apr 29, 2016 7:07 pm

Hi Edupristine team,

please find attached an image of a question in "currency exchange rate : determination and forecasting " chapter. My question is why we are not using down the ask divide rule? We are simply using the ask quote and later multiplying that with the notional principal, rather than dividing the same.

Please help with this.

Regards,
Nidhi
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