• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Save 20% on ACCA & CIMA Books

Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>

Rate assumption in basis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Rate assumption in basis

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 5, 2018 at 4:59 pm #471630
    Avatarhemraj123
    Member
    • Topics: 110
    • Replies: 188
    • ☆☆☆

    Sir, when calculating the future spot rate or futures price in basis calculation for explaining the outcome, different assumptions are used in different questions.

    Sometimes it’s the forward rate as the future spot rate, or spot price changed by the basis points to reflect the change, or futures price adjusted by basis points.

    Which assumption would u recommend to be used in exam?

    And if I do use another rate, should I just mention the rate is assumed? Do I have to justify the rate chosen?

    Thanks.

    September 5, 2018 at 6:20 pm #471675
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54843
    • ☆☆☆☆☆

    It depends on the information given in the question.

    For futures, we would normally use the lock-in rate as explained in my free lectures.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Rate assumption in basis’ is closed to new replies.

Primary Sidebar

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • TEDI on IAS 16 Property, plant and equipment – Initial Recognition – CIMA F1 Financial Reporting
  • ChanNV on Framework – measurement – ACCA Financial Reporting (FR)
  • ChanNV on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • Konstantinos43 on Financial Performance Measurement – Liquidity Measures – ACCA Management Accounting (MA)
  • Hirak.5 on ACCA TX-UK FA2025 Chapter 3 Property Income and Investments – Individuals

Copyright © 2026 · Contact · Advertising · OpenLicense · About · Sitemap · Privacy Policy · Cookie settings · Comments · Log in