30 September 2009
This is with reference to RTP of nov 2009. The problem says that Bid(gbp/euro) = .6858 Ask(gbp/euro) = .6869. The company has surplus of 725000 euros. To convert it into gbp, i did the following step 1. 725000 euros * bid(gbp/euro)= 725000*.6858 = 497205 I applied bid rate because we sell euros and bank buys euros. Thus i used bid rate (bank prespective)
But the problem is done as 725000*.6869 = 498002. I feel there is a mistake in RTP solution. Kindly clarify me in this regard.
CAclubindia
