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Forex chapter Ill-72

AFM

Earlier A/Cs are sold at 500 EUR But when price is fixed @ Rs 25000 their customer has to pay only 483.09 EUR (ie Rs25000/51.75) So Reduction in price is 3.382% (ie;[ 500-483.09]/500*100) Then Demand Increase by 5.073% (ie;3.382%*1.5) So revised demand is 2528 approx (ie 2400units*1.0573 ) Sir, Is this Logic Correct? Video Details ------------- Advanced Financial Management - AFM Foreign Exchange Exposure and Risk Management #118. Illustration # 72 - Part 2

rashid poonthala

CA Final

★ 30K+

21-May-25 10:32

Answers (1)

No, the price is fixed in INR and not Euro So equivalent Euros is the price - you have to ignore old price of 500 when you make this revised computation as they said price is fixed in INR. Comparision has to be 25000 @ 51.50 vs 25000 @ 51.75 I agree question can be worded better This is ICAI illustration 48 Page 10.104 https://resource.cdn.icai.org/83287bos67342-cp10.pdf

Sriram Somayajula

Admin

21-May-25 10:40

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