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lakeside 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

John Moffat 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

deepmaharaj says

Thanks . Very Nice. God bless.

judyluo says

I like

On Kei CHUNG says

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

rene12311 says

On 1 Nov, the LIBOR is 6%, therefore the future price is 1-6%=94.

bowe says

Quite interesting and straight forward.

mdauser says

Hooollaaaaaaaaaaaaaaaa

wedson 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

wedson 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

emekusobi 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.

admin says

Wait few minutes for the lecture to load before you press play