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Calculating foreign prices in local currency
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Q. How can I calculate the price of a foreign good in my local currency?
A. Let's use an example of your home currency (dollar) and the foreign one (the euro).
Follow this formula: $P(euro) = E$(euro) * P(euro)
You want the dollar price of the good/investment that is in euros.[$P(euro)]
You need the expected price for one euro in dollars [E$(euro)] multiplied by the price of the good in euros [P(euro)].
For example. You seek the dollar price of an investment that's 200euros. The price of one euro in dollars is 1.25
1.25 * 200 = $250
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Barry
Mr. Do It All
Jun 13, 2006, 4:58 PM
Post #1 of 1
(1222 views)
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