Hi @fp92, I was in your same exact situation about this during my L1 days.
All your statements are correct. Let me attempt to clarify:
- In the real world (NOT CFA curriculum), EUR/USD of 1.2 means 1 EUR = USD 1.2
- However, in CFA curriculum, EUR/USD = 1.2 is read as EUR 1.2 per USD 1. Just remember that CFA convention is opposite from ‘rest of the world’.
- For the purposes of the CFA curriculum, you should also be familiar with the convention of EUR:USD = 1.2, which means USD 1.2 = EUR 1, i.e. equals USD/EUR = 1.2.
Statement 3 above is important from an exam perspective. It’s important to note that the use of colon (:) is directionally opposite to using a slash (/), i.e. EUR:USD = USD/EUR in CFAI curriculum. In this case, USD is the numerator, EUR is the denominator.
Hope this helps