@ CFo = (init\a.t CO&t:)/&o = XXX
en "' ca&'n F\01-J / &I ,. XXX
etc.
l/'{ = f0reigt1 c1Am?ncy coc
: .tJy>V =- ,__
o etexmn-u ni \r iru-enn rclliJ fill'i ty Cl ~P) is
cu.,n--en.t\.~ WJ dwig : 'i (1+ih)•.!.x{1-1-ir)xF
Fo ==So x [ (H \n)/(l+if)] , s
Fo, fOn\lard n .U-P 'I
So= cu.rrent- spot r ~
in = iri t-err.n- rclli' \tlCfY1'1 cowilv\j :
;f jVlkere~t ratP fo~1g11 CC\..l.l'\11Y ,
EH'9:t\ve Mna.ndng '(at°" fOr- QW,nj y:,o&slblfl
rate or cho..hgQ in cummcy=
E (reff) " (H iF XI + (;,.o)) - I
ir = quoted iYW~t 'fate in FOVPign c1JXrency
1/- {) • v,o&Si\'.J\e , chfil'lg" 1n ro~igy, cl.lYmncy
Expectro f{na.ndrq rtlli? Cf- rowign cl.lrrQrc_y :
t;itpt>e~ finandtig ra.te = (~~uW~-;. 1( f:Crerf))
()AAlYUrilng ~hlch cL1.rrr1191 to bolTilN , .
Q) Whal i, t\1-e :/. pYOba.lo1Uty tWt.l: the fOV"e\Qn
cuwcmcy vab? wiU ~E? Wg~i-- ttlah rom'1?
@ \,Jna.t i, t\-\e 1. ~1-0\?a.loiOty tnat: t\'le fOrelgl"I
c\,U\"eY\cy r~ wiU bo lower- t:\,dt'I '1owie?
@ (Om.\'cO'e tw t\oJO.
@ Aciittio~a.lly I what i, l¼ie expttte:::l find.t\d~
r~ Uh> cortt\()ami to rome? u,~y o,.. kJgnor?
---- - -
counny VI&~ anatysrs
Polit\Cell ric~ l'\mgmid rctli~ A«\gn«I we~lli'
s y,
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f=lnancial vis~ I X 10·1. "
If X 2oi "' _ __
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