Hi John,
Examiner used totally different way to calculate the derivatives compare to your lecture in this question. He didn't calculate the profit/loss from futures or options at all. only use strike price to calculate the option, didn't use selling price of call option -strike price. and it's the same with futures. Will I get scores if I use your method? I have to use lock-in rate to estimate the future price for June, then calculate the profit/loss for futures and options. The final figure certainly will be different with examiner's.
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June 2016 Q1 options
8y ago#1Firstly, you say the examiner used a totally different way! That is not true - some questions he does it the way I do in the lectures and other questions he simply uses the strike price.
Unless they are OTC options (or unless the question specifies an approach) then it does not matter which approach you use - you still get the marks.
The final figure will not be significantly different, and for P4 it is never the final figure that gets the marks anyway - the marks are for the workings. As far as options are concerned, the marks are for proving that you understand how options (and futures) work.
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