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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June 2014
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
The 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.
ill check it out sir surely, but sir i didnt see that in options either , checking out what happens in open market
Lock-in rates are not relevant with options – they only apply when you are dealing in futures.
oh 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
That is true 🙂
