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November 30, 2016 at 7:45 pm
why did we calculate the profit on a ‘3 month forward’? Is that a rule that we have to learn or will we always be assuming that it is a 3 month forward whether it is mentioned in the question or not?
John Moffat says
December 1, 2016 at 6:30 am
I assume you are talking about futures. They are always 3 months futures (unless specifically told differently, which is very unlikely).
(We don’t refer to futures as being ‘3 month forward’ – forward rates are something different.)
November 1, 2015 at 11:57 pm
I was working Question 2 December 2011. I got up to where I was calculate the Gain on the futures market.
I followed your steps “Contract value x (Change in Futures/400)” but I noticed I was going wrong.
Can you tell me what impact does tick size and tick value has on this calculation?
November 2, 2015 at 7:23 am
There has never been a need to use ticks, but it gives the same result anyway.
1 tick is a movement of 0.01 in the futures price. The profit or loss on a 1 tick movement is 0.01 x contract size / 400.
So the total profit or loss is the number of ticks change, times the profit or loss for a 1 tick movement.
April 1, 2015 at 12:40 pm
Hi i am facing the same problem the video screen is black.
April 1, 2015 at 11:27 pm
See the support page / try another browser
April 1, 2014 at 9:04 am
Have you looked the technical support page?
The link to it is above.
August 18, 2013 at 3:57 pm
Thanks Opentution. Nobel Job. God bless.
April 10, 2013 at 1:50 pm
Hi, Instead of saying £100,000 x (95-92/400) which gives £750, incase we forget the 400 bit in the exams, can we also do this £100,000 x (95-92/100) x 3/12 which gives the same result as £750? Please advise. Thanks
May 29, 2013 at 6:03 pm
Only relevance for 3 month in exam, so remeber to divide 400.
May 29, 2013 at 7:26 pm
But dividing by 100 and then multiplying by 3/12 (or 1/4) is exactly the same as dividing by 400 🙂
If you find it easier to remember than fine! 🙂
April 10, 2012 at 7:11 pm
Simple and straight forward. Good job…..
March 19, 2012 at 2:40 pm
this is great!
March 11, 2012 at 12:02 pm
Those are real great lectures and presented very well by a great teacher.
I would rate them the best as I now understand the concept of Interest Rate Risk Management. I struggled a lot with textbook earlier but got hold of the topic only with these lectures.
Thanks a lot.
February 6, 2012 at 11:56 am
s k says
February 5, 2012 at 8:48 pm
The video is quite helpful, thanx opentuition, it is a very good initiative to anderstanding this topic from a real business perspective
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