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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › expected future price
in futures calculation, we calculate the expected futures price against the future price ( for example june, september or december price quoted in the question).
However, all most all of the questions of the expected futures price(for example February) is prior month which the quoted price( for example, march)
Both prices are reflected in different months but why do we use 2 months for comparison in order to find the gain or loss in the expected price ???
A deal using March futures can be completed at any time up to the end of March. We complete the deal on the date of the transaction (if currency futures) or on the date the loan starts (in the case of interest rate futures).
Yet again, I explain all of this in my free lectures.