Lignum co Dec 2012Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Lignum co Dec 2012This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts April 10, 2019 at 2:57 pm #511680 ayeshatabaniMemberTopics: 98Replies: 95☆☆Hi Usually in options when we pay premium for options, we just calculate the premium and convert at spot. We dont’ apply borrowing or investing rates, why have we done it here? April 11, 2019 at 6:36 am #511768 John MoffatKeymasterTopics: 56Replies: 53809☆☆☆☆☆Because the premium is payable immediately rather than at the date it is exercised (i.e. than the date of the transaction).It is a minor point for the exam, but a nice point to mention.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In