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AMERICAN QUOTE
EUROPEAN QUOTE
INVERSE QUOTES
CROSS RATE
BROKEN DATE FORWARD CONTRACT
Where
PxAthe price of the commodity ‘x’ in country
A.
S (A/B) is the spot exchange rate of the two
countries’ currency.
PBX is the price of commodity x in the country
B.
THE ABSOLUTE FORM OF PPP
REASONS FOR PPP NOT HOLDING GOOD
REASONS FOR IRP NOT HOLDING GOOD
Political risk
Taxes
Liquidity preferences
Capital controls
MULTI NATIONAL OPERATIONS
ACCOUNTING ISSUES
Choice of exchange rate
Definition exposure
EFFECT OF THE EXCHANGE RATE
CHANGES
Flow Effect
TRANLATION OF FINANCIAL
STATEMENTS
Current method
HYPERINFLATIONARY ECONOMIES