Formula Differecne

[reptilasix]

I have two different formulas for Relative PPP. But mostly all my reading for currency the qoutes are inverse from one to the other of the two materials that i have including CFA. What is the correct format ?
Relative PPP - S(0) X ( 1+ Inflation Domestic / 1+ Inflation Foreing) ^ T
FCC
Relative PPP - S FC/DC X (1 +Inflation Foreign / 1 + Inflation Domestic ) ^ T
FC /DC
What will be the correct way to interpret the Quote?

 

[S2000magician]

CFA Institute’s convention for quoting currency exchange rates is at odds with industry conventions: CFA Institute writes USD/GBP 1.6664 to mean that USD1.6664 = GBP1.0, when the rest of the world would write it as GBP/USD 1.6664.
There ain’t a thing you or I can do about it. Sorry.
As for the PPP formula, just make sure that you have the domestic inflation rate multiplying the domestic currency and the foreign inflation rate multiplying the foreign currency.