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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Kenduri Co (6/13)
Dear Sir,
In the question Kenduri Co, part a, at the exercise price $1.62/£. we need to hedge 23.7 contracts then it’s round to 23 contracts.
Question: if the decimal is more than 0.5, i usually round up 1 more contract. In above question, i round to 24 contracts so my result is different from the solution in the book. Why did they round to 23 contracts in this case ? any rule for this?
Thanks,
DT
It doesn’t matter and it would not lose any marks – even though the answer will be a little different.
I would always round to the nearest contract.