Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Interest Options – Calculating Premium

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Interest Options – Calculating Premium

Viewing 1 post (of 1 total)
  • Author
    Posts
  • April 30, 2022 at 9:16 pm #654683
    Yousuf9
    Member
    • Topics: 2
    • Replies: 2
    • ☆

    Hi All,

    I noticed that while calculating premium in interest rate options question “Massie” we calculate as per below:
    (Strike Rate x Tick Value x Number of Contracts)
    While in question “Alecto” and “Awan” we calculate as per below:
    (Strike Rate x Tick Value x Number of Contracts x Time.. ie 5/12)

    Can someone please elaborate the difference ?

    Thanks,

  • Author
    Posts
Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.