Sir,
I noticed in lock in rate question , we are not closing the deal.We just calculate the transaction value at lock in rate and consider it as final payment.As per my understanding futures are meant for gain /loss so we can balance it with gain or loss on actual transaction.
kindly advice.
Ask the Tutor ACCA AFM
Lock in rate
8y ago#1The lock-in rate is the net effect of converting the transactions at spot together with the gain or loss on the futures.
This is all explained, with examples, in my free lectures on the lock-in rate.
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