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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Currency futures
Hello Sir kindly clarify for this question December 2018(Notourne Co)
Where we are not given the spot rate at the actual transaction,we assume that it is equal to the opening future price so
So for me I had used 1.0369 as my spot rate then add the remaining basis to get the closing future price
But the examiner’s assumption he used 1.0292 instead of 1.0369
We never assume that the spot rate is equal to the opening futures price.
We calculate the lock-in rate, and I do explain how to calculate this in my free lectures.
