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Hi sir, we use lock in rate when spot rate is not given at the date of transaction right?
How do i know if its add or minus for the change in basis?The spot and futures prices always get closer together over time.
So if the futures price is currently higher than the spot, then the lock-in rate will also be higher than spot.
If the futures price is currently lower than the spot, then the lock-in rate will also be lower than spot.
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