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Will the examiner asks us to estimate the future price using tick method?
In yr lecture u assumed the future starting at 1.4840-1.4850
then the difference is 0.0001 to 4.dp
We should always assume the diff as to 0.0001?
The examiner has never required you to use ticks and I am certain that he never would!
(I never use them (as you will have seen from my lectures 🙂 ), but obviously if you find it easier to use ticks then fine.)
For foreign exchange futures, one tick is always 0.0001.
For interest rate futures, one tick is always 0.01.
