- This topic has 1 reply, 2 voices, and was last updated 8 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
sir your said that contracts of interest rate futures come based on govt securities of 100, and if the value of contract is like 98 interest is 2 , but havent seen its application in the question /examples in lecture notes? are interest rates given like that in exam?
I do not say that at all!!
Interest rates are always given directly as a %. It is the equivalent futures price that is 100 minus the interest rate.
So if the interest rate is 2%, then the equivalent futures price would be 98.All the examples in the lecture notes (that I work through in the lectures) are written in the same way as are the questions in the exam.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.