Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June 2014
- This topic has 5 replies, 2 voices, and was last updated 8 years ago by
John Moffat.
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- November 19, 2016 at 1:45 pm #349986
Hello Sir, i wanted to know that why did you not add subtract profit or loss in the futures contract scenario to advise, u took the payment on the open market based on the lock in rate but didnt add subtract the profit or loss
November 19, 2016 at 5:50 pm #350038The lock in rate is the net result of converting at spot and dealing with the profit and loss.
My free lecture on lock-in rates will help you with this.
November 19, 2016 at 9:40 pm #350075ill check it out sir surely, but sir i didnt see that in options either , checking out what happens in open market
November 20, 2016 at 7:49 am #350114Lock-in rates are not relevant with options – they only apply when you are dealing in futures.
November 20, 2016 at 5:52 pm #350185oh right , so if we did an exact spot rate at the exercise date as we cannot use lock-ins for options , we could have seen what would have been the result at the open market,
thanks alot
November 20, 2016 at 6:03 pm #350192That is true 🙂
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