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Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Lock in rate
Sir, in calculation of lock in rate
if spot rate is lower than future , why it is that current future rate – basis
rather than adding the basis?
I thought the on the transaction date,
the future price (agreed rate in the future time) is bigger so that
it is appropriate to add the basis from the current future price
to calculate future price on the transaction date.
thank you for help:)
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