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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › LIRIO CO (MAR/JUN 16)
Good Day Sir,
In LIRIO CO, while calculating the lock in rate, in the futures hedging part of the question, what the examiner did is dividing 1 by the spot rate (1 by 1.1585).
What I did while solving was, I divided 1 by the Spot Average { (1.1585+1.1618)/2 }.
The Net Receipt in Examiner’s Answer is $23.12m whereas my answer is $23.13m.
Would any mark be deducted because of this discrepancy?
If yes, could you please be kind enough to explain the reason behind selecting 1.1585 and not 1.1618?
Doing what you are suggesting is fine and would get the full marks.