hello sir,
i used the lock in rate to calculate the amount payable in chf.
however when i calculate the no of contracts to be sold, it is a decimal. in this question, the round off is negligible to a mere 0.02 contract.
in case, the difference was more than that, would i have to calculate the amount payable for the unhedged amount using the forwards rate separately or does the lock in rate cover it?
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CMC CO. (SPECIMEN EXAM)
5y ago#1You would recommend using the forward rate on the amount over or under hedged.
(Incidentally you can fine a lecture working through the whole of this question if you follow the link to 'revision kit live' from the main Paper AFM page :-) )
okay sir, thank you so much!
5y ago#3You are welcome :-)
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