Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

currency futures

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
November 25, 2015 at 9:30 am #285127
tasvitswa
Member
- Topics: 2
- Replies: 3
i can’t figure out how to estimate the futures closing price using the basis risk approach….do we ADD or SUBTRACT the unexpired basis risk to the current future price, how do we do that?
November 25, 2015 at 11:05 am #285148
John Moffat
Keymaster
- Topics: 56
- Replies: 51571
If the current futures price is higher than the current spot, then it will always be higher (and vice versa) – the two will just get closer together. That is the only way of knowing whether to add or subtract.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.