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Hi,
I am appearing for AFM in march 2020,would like to have suggestions as to which exam kit should I consider to practice question -Kaplan or BPP.
Thanks
Can i know when to calculate Lock in rate in Question when all the info is being given in question?
It depends on what you mean by ‘all the info given in the question’.
If you are given the current spot rate and futures price, and you are also given either the spot rate or the futures price on the date of the transaction then you do not need the lock-in rate.
More commonly in the exam these days you are not told the spot rate or the futures price on the date of the transaction. This is when you need to use the lock-in rate, which gives the net effect of converting the transaction at spot together with the gain or loss on the futures.
I work through examples of both in my free lectures.
In future please start a new thread when you are asking about a different topic, and if you want me to answer then ask in the Ask the Tutor Forum (this forum is for students to help each other) 🙂
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