The notes say that pricing a foreign currency forward contract is simply “applying the covered int arbitrage formula from economics” They go on to provide an example: S0 x [(1+RF DC)/(1+RF FC)] where S0 is spot @ time zero quoted in DOMESTIC CURRENCY PER UNIT OF FOREIGN currency. I am like 99% sure that in economics if you are given spot in DC/FC, then you multiply the INVERSE (fc/dc), what the FUCK is with these inconsistencies, this stuff is killing me.

I think i am confusing myself, I guess maybe i should forget the notation and just think of everything in terms of what is in “n” units and what is in “1” units, (counter always “n”), and then always put the counter rate on top. Is this accurate?

counter, shounter - baloney use interest rate of what’s on top, on top…