Frongoch Co (June 2022)

This topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.

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August 30, 2023 at 6:29 pm #690988
nurazman
Participant
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1) Question (b), why the forward contract is said to be the same as (a) and why does the 5 months forward rate is not relevant ? I am not sure with the examiner’s answer.
August 31, 2023 at 8:32 am #691033
John Moffat
Keymaster
- Topics: 57
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It is because for (b) we are looking at the situation on 1 August and the forward rate quoted on 1 August is not relevant because the transaction occurs on 1 August
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