Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA AFM

Futures Interest rates Mock 2 Q2 Autocrat

RRichard7y ago
Dear Sir I am noticing that the method of calculation using the deduction of the unexpired basis from the future sell (if borrowing) price works out the same whatever the amount the examiner says the spot rate is at the time of calculation Fore example a(i) has an effective interest rate of 4.86% Will this always be the case, even if examiners says the interest rate will be such and such in 7 months time?
John MoffatJohn MoffatTutor7y ago#1
It is always the case - it is the lock-in rate, and I explain about this in my lectures.
This topic is locked — no new replies.