Radhika R Krishnan (Student) (135 Points)
07 March 2017In CA Final SFM, international finance, if the spot rate is given as euro 1.196-1.197/ sterling and 6month forward premium is shown as .60-.55cents, is the amount supposed to be added to arrive at the forward rate or as the premium is shown in descending order, the premium amount be deducted from the spot rate to arrive at the forward rate? please help
Studentsca
(CA Practice )
(3577 Points)
Replied 07 March 2017
In such a case deduct the forward premium to arrive at forward rate.
manoj
(student)
(5205 Points)
Replied 07 March 2017
If Premium amount is in ascending order then add
if it is decesending order then reduce
in your case deduct the premium
Radhika R Krishnan
(Student)
(135 Points)
Replied 07 March 2017
CA Ruskin B
(Member)
(2602 Points)
Replied 07 March 2017
CA Ruskin B
(Member)
(2602 Points)
Replied 07 March 2017
vikram parmar
(article)
(66 Points)
Replied 08 March 2017
CA Ruskin B
(Member)
(2602 Points)
Replied 08 March 2017
CAclubindia
