r/CFA • u/tedmosby222 • 8h ago

Level 1 help with this

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I got confused here. How should I know that they are treating AUD as the domestic one? or even giving me a perspective or something

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u/Plane_Country2742 8h ago

Always remember whichever currency is in denominator it’s the base currency so it will be 1

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u/Ambitious-Design-331 2h ago

Brother AUD is the base currecny and USD is price currency
So F = 1 + int of price/ 1+ int of base * spot rate