I am having problems figuring out the unexpired basis risk. I'm sure I am overlooking something simple.
I can find all the figures to the question except for one.
The steps that I follow are
1. Calculate the number of contracts
2. Calculate the basis
3. Unexpired on Date MM = 2/6 * basis
It is the 2/6 that I am not sure on. I have also seen that it could be 1/4.
Is the 2/6 or 1/4 set/standard?
ACCA exam results — Are you ready?Chat about it >>