# Interest rate futures Example 4

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### Comments

1. says

Please can someone help me?
From the Link below

http://www.accaglobal.com/en/student/acca-qual-student-journey/qual-resource/acca-qualification/p4/past-exam-papers.html

Global Pilot paper – from June 2013 exams
Question 2 – Alecto Co.

In the solution, when calculating the profit/loss of the futures deals for both interest rate futures and options on interest rate futures, the calculation was not divided by 400 as explained by the tutor here, can you please explain why this was the case?
Thanks

• says

The answer has used ticks, where the 400 has already been taken into account. You do not need to use ticks, but it gives the same answer either way.

One tick is a change of 0.01, so the profit or loss on one contract changing by 0.01 is 1M x 0.01 / 400 = \$25

2. says

sorry I am dumb. Can anyone tell me how the 94 future price on 1 Nov is being calculated? Thanks a lot

3. says

in this June 2010 Mock they said they would not want the interest receivable to decrease by \$2500 from the amount that would be paid on the current interest

4. says

Can some assist me what will be the Interest Receipt on Futures if Example was to Invest the same amount but the inerest rates Fall by 1% and the Futures price move by 0.85%,this example is similar to one on the Kaplan Mock June 2010 and when i try it am geting a total of\$11,000.00 and 80,000.00 giving a total of \$91,000.00 instead of \$97,000.00 that the solution is giving

5. says

Please could someone explain what might be the problem, I have not been able to view P4 Lecture 3 on Interest Rate Futures beyond )7:39 minutes. The lecture stops at 07:39min each time i played it where as its total time is 14:46 minutes.