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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › 2014 DEC QUESTIONS keshi
Hello sir.
In 2014 December question KESHI,they did’t give future price instead of that they gave some basis points,..
And they deducted basis points from February 1st future,so my question is that, without understanding increase or decrease the current spot rate and march future price,how we can spot actually we should have to be added or substrate the unexpired basis points
In future, you must ask in the Ask the Tutor Forum if you wish for me to answer. This forum is for students to help each other.
Usually this is not a problem because usually you are given the current interest rate and the futures prices, and the two must move closer together which therefore determines whether or add or subtract the basis.
Keshi was unfair in that it is not made clear whether to add or subtract the basis, and therefore you would have been given full marks whichever you did (even though obviously the answer would end up being different).
Thanks very much sir.
And I’m sorry sir, actually even I would using ur lecturers,it’s my first time asking a question related to a paper based,
Further questions I will asking in that route which u suggested
Thanks
You are welcome, and no problem 🙂
