CIMA Exam CIMAPRA19-F03-1 Topic 5 Question 74 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 74
Topic #: 5

Company A is based in country A with the AS as its functional currency. It expects to receive BS20 million from Company B in settlement of an export invoice.

The current exchange rate is A$1 =B$2 and the daily standard deviation of this exchange rate = 0 5%

What is the one-day 95% VaR in AS?

AA$50,000

BA$164,500

CA$82,250

DA$822,500

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Suggested Answer: A, B, E

by Fernanda at Oct 09, 2023, 02:41 AM

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Benton

15 hours ago

I think the answer is B) A$164,500.

upvoted 0 times

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