Question 46 - MM Mock PM #3

CFA Level III Derivatives
#1

Hello everybody,

I have a question regarding a MM Mock, particularly mock number 3 PM session.

Question 46 deals with equitizing cash, and different information is provided, interest rates from two countries included.

However those interest rates are ignored and the calculation simply goes on to Market Value to equitize/Price forward.

I wonder why interest rates are ignored, since according page 237 of Book 5 where an example of Equitizing cash is provided we have to use them.

Regards

#2

There’s an errata to that question. Check out Marks website for the corrected answer.

#3

Okay, so we use the British rates - i mean the one in which the futures is issued? Thanks