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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Dec 2014, Keshi Co
1. While calculating the gain on options, the book says : 0.0002* $1m * 3/12 * 42
How is it 0.0002?? Should it not be basis points/100?
2. What is the formula for calculating the effective interest rate on option hedging technique?
Sorry, but both of these questions are covered in my free lectures.
You really cannot expect me to type out my lectures here 🙂
