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Casasophia co(jun 11)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Casasophia co(jun 11)

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
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  • June 6, 2020 at 10:55 pm #573009
    AvatarSneha00
    Member
    • Topics: 46
    • Replies: 20
    • ☆☆

    In futures for calculating no of contracts why they have divided by the lock in rate price, if I would have calculated it by 20m/1.3698 which is futures price would it be wrong?

    Because we always divide by futures price only and then by contract size to calculate no of contracts.

    June 7, 2020 at 10:20 am #573031
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    It is arguable as to whether to use the lock-in rate or the current futures price. You would get the marks for either (and usually it ends up making no difference to the number of contracts), although using the lock-in rate is arguably better.

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