Dec 22 Q1bii – Current price

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January 21, 2024 at 10:50 am #698745
phuongmore
Participant
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In Dec 22 Q1bii,in basis calculation, to calculate current price on 1/1, the answer is : 100-3.3

But the question said that Fondir Co can invest funds on a short-term basis at the USA base rate (which is currently 3·3%) less 30 basis points
I think current price should be : 100-(3.3+0.3)

Please help me to explain. Thank you
January 21, 2024 at 6:53 pm #698777
John Moffat
Keymaster
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Futures prices move with the base rate, and are independent of whatever rate Fondir (or any other company) is able to invest at.
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