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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Locked in rate
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!
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 🙂
Thanks sir, I hv just figured out before I see your reply! Thanks anyway 🙂
You are welcome 🙂