CFAI Volume 4, Reading 30, Page 157, Question 2 The calculation in the answer has the number of futures contracts to buy as 119.69, but rounds DOWN to 119. Is this a convention for futures contracts, or a mistake?
Almost positive it’s not a convention. Most likely a rounding error. On the test, I figure if I’m that close, I’m correct. I don’t think a grader will ding you for that on the morning session, nor will you have to choose between 119 and 120 on a multiple choice question. Just my $0.02.
Ah no, you definitely have to round futures as they can`t be bought or sold fractionally. Round to the closest whole number. u WILL lose points.
It must be an error, because rounding to 120 introduces less tracking error.
I had scribbled on there too “round to 120?! no?” Looking back, the question is as king “Approximate” number of contracts, so we should be okay with either 119 or 200, both are approximate. Hrrmph…indistinct mumble… approximate my foot
Maybe CFAI rounds down and Schweser rounds up? Or CFAI doesn’t like to commit extra cash and Schweser has no problem with that, when it is rounding up ?
Agreed, approximate is the key word here. If they mark 119 wrong when it should be 120, we may as well just quit right now.