Locked in rate — OpenTuition Forums

HHaru1311y ago

Hi sir, When calculating the locked in rate for futures, when do we need need to plus the basis and when do we need to minus? Getting quite confuse when we have to plus or minus. Can you explain please? Thanks so much!

John MoffatTutor11y ago#1

The lock-in rate will always be between the current spot rate and the current futures price, so that lets you decide whether you need to add or subtract :-)

HHaru1311y ago#2

Thanks sir, I hv just figured out before I see your reply! Thanks anyway :)

John MoffatTutor11y ago#3

You are welcome :-)

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