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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Basis risk General query
Say Basis risk comes 0.123, then we will consider it as 12.3 points ?!
It is 12.3 points, but I cannot think as to why you think this is relevant. The basis is relevant when calculating the lock-in rate for futures (or when estimating a futures price) and we keep it as 0.123 in the calculations.
Have you watched my free lectures on the management of foreign exchange risk and of interest rate risk?
