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Dear John,
In doing the part b of this question (the futures mark – to market), I subtracted the dsiposal (30 contracts) before valuing the rest of the 20 contracts on price 95.66 (and calculate loss as a result)
Tthe examiner values (and so calculates the loss) the 50 contracts on the 3rd June before the disposal on the same day.
Is there any reason why what I did is incorrect? Naturally what came to mind was to reduce the available contracts by the disposal (30) and value the rest at the closing price (calculate loss as a result).
Apparently my treatment had understated the loss, as compared with the examiner’s
Please help
Regards
But the examiner allows what you have done and shows it in italics as an alternative – although it does end up giving the same result.
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