首页 | 学习中心 | 注册 登录
返回列表 发帖
Spongebob

Rank: 2

UID
223214 
帖子
199 
主题
150 
注册时间
2011-7-11 
最后登录
2013-9-27 
1# 跳转到 » 倒序看帖
打印
tT
发表于 2013-3-31 13:03 | 只看该作者

Another Exam 2PM Q: Econ/PPP

only, solution, compare, actual
Exam 2 # 112:
In this Q you have to find out what the future spot rate should be and then compare to the actual future spot rate to say if the Canadian $ appreciated or depreciated in real terms. So the way I did it was with PPP: $0.5 x (1.02/1.07) = $0.476. But the solution says to do $0.5 x (1-0.05) = $.475. I know that I’m being a stickler and it’s only one thousandth of a decimal point off, but I’m asking about the method used–iisn’t Schweser wrong? I feel like they’re using a “simplistic, rough estimate” or guess and my way (PPP) is correct. Does anyone remember this Q? Thanks.
收藏 分享

KungFuPanda

Rank: 2

UID
223392 
帖子
298 
主题
10 
注册时间
2011-7-11 
最后登录
2014-8-2 
2#
发表于 2013-3-31 13:03 | 只看该作者
You got basically the same number and should have the same answer. It’s the same thing as nominal=real+inflation - this is technically not the right way as it should be nominal=(1+real)x(1+inflation)-1, but you would be off just a bit.

TOP

SkipE99

Rank: 2

UID
223352 
帖子
216 
主题
39 
注册时间
2011-7-11 
最后登录
2013-8-23 
3#
发表于 2013-3-31 13:03 | 只看该作者
ya but i didnt use nominal = real + inflation. i used PPP to find the theoretical spot rate in one year.

TOP

chunty

UID
223333 
帖子
372 
主题
57 
注册时间
2011-7-11 
最后登录
2013-9-12 
4#
发表于 2013-3-31 13:04 | 只看该作者
(1 + a) / (1 + b) is approximately equal to a-b when a and b are relatively small #s.
so you could do it either the long way as 1.02/1.07 or (1-0.05) and as you yourself have attested the number is not a whole lot different, in the final analysis.

TOP

Chuckrox

Rank: 2

UID
222315 
帖子
427 
主题
12 
注册时间
2011-7-2 
最后登录
2016-4-19 
5#
发表于 2013-3-31 13:04 | 只看该作者
last minute question if anyone can help.
not really understanding the reasoning behind the answer. Nominal spot rate in one year is .350 C/$ and Future spot rate is 0.476
Doesn’t this mean C appreciated in real terms?
obviously not, but can someone explain to me why.

TOP

DarienHacker

Rank: 2

UID
222260 
帖子
279 
主题
75 
注册时间
2011-7-2 
最后登录
2014-6-29 
6#
发表于 2013-3-31 13:04 | 只看该作者
in first year, .35C bought one dollar.
in second year, .476C bought one dollar.
you needed more C to buy a dollar.
C got weaker.

TOP

返回列表