Hi guys, I have a question on the wording of exchange rate. When the book says Wilson wants to approx the Forward prem/disc for the JPY against the USD. Does that mean the notation is USD/JPY or JPY/USD? I’m always confused on this. Can someone please clarify? Thanks
usd/jpy
Thank you!
it really depends on the quote type too, you just can’t say usd/jpy.
USD/JPY - The direct quotation for the yen against the dollar.
A direct quotation for yen against the dollar would be something like, $1/Y123, or .00813. A direct quotation for USD against the yen would be something like Y1/USD.00813 or 123. Is this right? this stuff is really confusing.
pepp Wrote: ------------------------------------------------------- > A direct quotation for yen against the dollar > would be something like, $1/Y123, or .00813. > > A direct quotation for USD against the yen would > be something like Y1/USD.00813 or 123. > > > Is this right? this stuff is really confusing. That is what my SG says, so I’m going by that. I did not see any errata posted either.
i think its jpy/usd. jpy/usd = usd:jpy so for example usd:jpy = 100yen that means you have found how much yen buy you one dollar. your question says “approx the Forward prem/disc for the JPY against the USD”. he wants the prem/disc FOR the JPY. so he wants it in terms of the JPY as the spot rate.