What futures price do we use to calculate the number of contracts?

This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.

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May 31, 2013 at 12:42 pm #127978
liz77
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I always thought we use the futures price as at the date of entering the futures contract when calculating the number of contracts to buy/sell. But in June 2011 Q2, the examiner has used the lock-in rate to determine how many contracts.

So what’s the correct procedure?

Thanks!
June 2, 2013 at 11:40 am #128241
John Moffat
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It does actually make more sense to use the lock-in rate. However you would not lose marks if you used the current futures price.
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