Sir could you please explain in part (b) where the figures are coming from , i could only make out that interest rate after premium should be 4.05?.Thanks
Ask the Tutor ACCA AFM
troder 6/03
You really need to watch the free lecture on interest rate options - I cannot type it all out here.
With regard to the collar, then once you have watched the lecture on options, this article should explain:
https://opentuition.com/acca/p4/interest-rate-collars/
Thank you sir.
You are welcome :-)
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