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Lock in rate for Currency and Interest Futures

Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Lock in rate for Currency and Interest Futures

  • This topic has 0 replies, 1 voice, and was last updated 5 years ago by chris1337.
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  • March 3, 2021 at 3:20 pm #613088
    chris1337
    Member
    • Topics: 7
    • Replies: 2
    • ☆

    Hello!

    quick question, the lock in rate “shortcut” using basis risk + futures price provides the same answer as doing the longer detailed calculation & is the only choice in some circumstances e.g. if you arent given LIBOR.

    so my question is, should i always try to use the shortcut in the exam?

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