# Interest rate options (part 1)

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1. says

John you are an amazing gifted tutor you make it all sound very easy, hope in will be both in practice and exam God Bless You am confident for a victory many thanks.

2. 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

3. says

Not Working. loads first couple of seconds the starts again… Please assist… Critical time… Critical topic!!!

• says

restart your router.. seems like a overloaded internet connection at your end