MAFA problem..!!
This query is : Resolved
10 January 2009
got stuck with following problem..pls advise..!!
The Price of the pound sterling was quoted at $ 1.80 in New York and on the same date the DM spot rate was quoted at $ 0.40.
What would be the expected price of the pound to be in Germany? If the pound was quoted in Frankfurt at DM 4.40/pound, what would be done to profit from the situation..?
Thanks...
The Price of the pound sterling was quoted at $ 1.80 in New York and on the same date the DM spot rate was quoted at $ 0.40.
What would be the expected price of the pound to be in Germany? If the pound was quoted in Frankfurt at DM 4.40/pound, what would be done to profit from the situation..?
Thanks...
10 January 2009
In new York,
1Pound=$1.8 ie. $/Pound=1.8
1DM=$.4 ie. $/DM=.4 ie. DM/$=1/.4
ie.DM/Pound=DM/$*$/Pound
=1/.4*1.8=4.5
ie. 1Pound=DM 4.5
If the pound was quoted in Frankfurt at DM 4.4/Pound then to make profit buy Pound from Franfurt and sell it in New York.
Hope you understood.
Thanks
1Pound=$1.8 ie. $/Pound=1.8
1DM=$.4 ie. $/DM=.4 ie. DM/$=1/.4
ie.DM/Pound=DM/$*$/Pound
=1/.4*1.8=4.5
ie. 1Pound=DM 4.5
If the pound was quoted in Frankfurt at DM 4.4/Pound then to make profit buy Pound from Franfurt and sell it in New York.
Hope you understood.
Thanks
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- CG Tax On residential property
- Post Office RD Interest
- Applicable TDS for Purchase of Flat from NRI
- Building and other construction workers welfare cess act 1996
- Eway bill for machinery reparing
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Gift of mutual fund units to daughter
- Form 10BD Filling
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
