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regarding intrest futures

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › regarding intrest futures

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 24, 2022 at 10:34 am #664138
    dennissherpa101
    Member
    • Topics: 58
    • Replies: 60
    • ☆☆

    Selling a future creates the obligation to borrow money and the obligation to pay interest

    Buying a future creates the obligation to deposit money and the right to receive interest.

    Sir can you kindly explain this two line and also why one line mention obligation and the other line mentions right. Thank you inadvance

    August 25, 2022 at 8:48 am #664217
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    No, I will not explain because they are not true!

    Futures are explained in my free lectures.

    August 25, 2022 at 10:24 am #664235
    dennissherpa101
    Member
    • Topics: 58
    • Replies: 60
    • ☆☆

    Sir I have copy paste this line from acca technical article from their website. and I have gone through all the lectures .:)

    August 26, 2022 at 7:18 am #664286
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54675
    • ☆☆☆☆☆

    The article is not written by one of the examining team and in terms of the use that financial managers make of interest rate futures those two lines are simply not true and are irrelevant for the exam. The rest of the article is OK.

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