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Interest Rate Options Hedging

TThu5mo ago
Hello Sir, The marking scheme awards one mark for the premium calculation. But instead of calculating each dollar amount separately, would it be acceptable to keep everything in % terms first (eg. 3.5% + 0.38% ? 0.193%). Then apply the final % once to the amount (144 contracts × $500,000 × 3/12 × 3.69%). Would this still earn the premium calculation mark? Thank you for your guidance.
John MoffatJohn MoffatTutor5mo ago#1
Yes, it would get the mark :-)
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