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October 17, 2020 at 9:57 am
Great lectures! I have one question regarding the closed future contract of 6093.75. Why is this in $$’s if the future contract purchased was in lots of 62500 ££’s? The video time is 18:24.
John Moffat says
October 17, 2020 at 2:04 pm
The exchange rates (and therefore the gain) is quoted in dollars per pound.
October 13, 2020 at 4:01 pm
Sir is there a place where i can find the questions that you take up in your video lectures? If yes, then where exactly? Could you attach a link possibly to the questions?
October 17, 2020 at 2:01 pm
Go to ‘ACCA’ in the top bar. In the new bar that appears go to ‘AFM’. There you will find links to all our AFM resources including our free lecture notes.
November 7, 2018 at 6:59 pm
My query is that: for instance if we tended to receive the amount at 12th Sept 2004 then do we choose September futures (as the futures usually expire at the end of the month)?
November 7, 2018 at 8:18 pm
Oh I get it! You use Sept futures to hedge the 12th Sept amount, as its expires at the end of month. So there is still time to hedge it before expiry.
Thank you Sir for your well explained and wonderful lectures.
October 31, 2018 at 3:58 am
Hi sir, sorry to be posting a past year question here, but the Ask tutor forum page can’t seem to be found.
From the March/June 2016 paper Question 1 LIRIO, for the currency futures calculation- I don’t get how the spot rate for the date of conversion(1 June) is found, hence I cannot find the futures rate on that date as well using the method you taught us. The answer uses – 0·8638 + (2/3 x (0·8656 – 0·8638)) = 0·8650 [This can also be done using the spot rates or forward rates] which i do not understand.
October 31, 2018 at 7:06 am
You can find the link to the Ask the Tutor Forum on the main AFM page!
The answer has apportioned between the March rate (in 1 month) and the June rate (in 4 months) to get a 3 month rate. However as the examiner states in his example you get exactly the same answer by doing it the way I explain in my lectures, which is strictly the more correct way.
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