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interest rate futures

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › interest rate futures

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • May 18, 2018 at 2:43 pm #452691
    thomas1212
    Member
    • Topics: 45
    • Replies: 16
    • ☆☆

    in the textbook, it says that

    the basis for a currency futures contract was defined as :

    ” spot rate – future price ”

    i’m not sure why there is a dash ( – ) between spot rate and future price. Does it mean that spot rate will soon become future price ?

    May 18, 2018 at 3:15 pm #452712
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54724
    • ☆☆☆☆☆

    It is not a dash, it is a minus sign!!

    Why are you not watching my free lectures on foreign exchange risk management? I work through everything needed for the exam, with examples.

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