hi sir ,
if you could please point out these 2 things from this question.
1)part a - futures calculation : they have used 14,624,159 to calculate the futures. could you tell me which spot rate they have used to convert to this amount?
2)option- when calculating the premium for options they are using the lower spot rate which is 1.3585. can you please explain why they are using this spot rate?as i thought since this is a receipt we will use the higher spot rate.
please if you could clear these two concepts.
thanks alot sir
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Q casasophia co 6/11 (bpp kitQ 59)
9y ago#11) They have estimated s 4 month futures price by approximating linearly between the 2 month and 5 month prices.
2) We pay a premium when we buy options - not receive it.
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