regarding intrest futures

This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.

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August 24, 2022 at 10:34 am #664138
dennissherpa101
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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
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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
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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
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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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