When doing the Basis calculation for Currency Futures - should I be using the mid market spot rate - or the relevant spot rate depending on whether I am buying or selling the counter currency?
I've seen in past exam questions either one being used - so find it confusing
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Currency Futures spot rates
3y ago#1There is a logic behind using both of them and the examiner accepts either (the final answer is slightly different, but as always that it irrelevant :-) )
I've seen both ways in past exams and they accept either. The small difference in your answer doesn't matter. Just pick one and stick with it.
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