Valuing currency forwards

CFA Level II
#1

The formula is Vt = St/(1 + rBC)^(T − t) − FT/(1 + rPC)^(T − t)

Given a quotation EUR/USD=1.10 normally I reshuffle to get in this format: 1.10/€1 to identify Euro as base currency and Dollar as price. Is this in line with the valuation formula? i.e. is BC=€ and PC= ?

I have lied to myself too many times that I know this formula but always fail to implement it in a real question because of the confusion it creates.

#2

CFA Institute’s convention is that EUR/USD 1.10 means €1.10 / $1.00; USD is the base currency, EUR is the price currency.

Note that this is the reverse of the industry standard convention on currency exchange rate quotations.