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March 20 Q2c

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › March 20 Q2c

Viewing 2 posts - 1 through 2 (of 2 total)
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  • September 3, 2020 at 4:19 pm #583281
    raheel95
    Member
    • Topics: 15
    • Replies: 11
    • ☆

    In this question I have tried to calculate the daily losses using the method in your lectures rather than using ticks as below:

    1 March:
    81 x 200,000 x (1.1410 – 1.1422)/400 = -48.6

    2 March:
    81 x 200,000 x (1.1418 – 1.1410)/400 = 32.4

    And so on…

    However these are not the figures calculated in the solution. Please could you explain where I am going wrong with this method.

    Thanks

    September 4, 2020 at 9:35 am #583361
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Why have you divided by 400? We only divide by 400 when they are interest rate futures. These are currency futures.

    so on 1 March:

    81 x 200,000 x (1.1410 – 1.1422) = 19,440 loss

    and so on 🙂

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