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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › FNDC PLC (Dec 06)
Requirement : C
1)
Net premium payable (£45m*0.095%)*”2/12″
My question is why “2/12”, shouldn’t it be “3/12”
2) Can i calculate loss on call option as follow
(60 contract * £0.5m)*(((96-96.37)/100)*3/12) = – £27750
As it give same result
1. Yes – it should be 3/12 (and the examiner has made the same mistake in part (a) of the question as well).
2. That is fine 🙂
