So I’m looking at the Secret Sauce, and the IRP formulas are different on 2 pages. Page 40 shows (F/S)=[(1+RDC)/(1+RFC)], when quote is DC:FC. Page 48 shows (F/S)=[(1+RFC)/(1+RDC)], when quote is FC:DC. So, I guess there point is just to go by quote and change the formula accordingly. It seems like to avoid confusion they should leave the formula the same and just say to change the quote to DC:FC. But, using Schweser’s mentality, is it correct to say that for all of the rate parity equations we can just put whatever currency is listed first in quote (i.e., DC), put it on top in the equation?
i’d suggest converting everyting to one formula. I prefer using direct quotes: F/S = (1+RDC)/(1+RFC)