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Sir, under hedging using futures ,
To find the future price on 20 June using the method from open tuition I get the answer as below
20 April 20 June. 30 June
Spot.R. 0.6949 0.6978
(1/1.439) (1/1.433)
June futre 0.6964 0.698
=(0.0015) =(0.0002)
0.0015x10days/71d
Profit on futures 0.698-0.6964=0.0016Whereas in bpp they got 14 ticks
Also in bpp they have used June forward rate for April spot in calculating 20 June futures which is confusing me. Can u please explain why sir . I have followed your lectures and it is very helpful
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