ACCA: AFM,Nutourne Dec 2018

ACCA: AFM,Nutourne Dec 2018
I have discussed this foreign currency risk management question that how to solve this on ACCA CBE practice platform.It will help you in your preparation of AFM exam.

[@hosamtayyeb6001]

Thanks for the great effort. Why in option premium you didn't multiply into the period = (0.86/100)*125000*98*(6/12) ?

[@aamerraza7611]

God bless you sir ...very helpful

[@janicedsilva2857]

Thank you! Very Helpful

[@fakhiramusa1093]

Hi, can i know why the no. of contracts are not calculated based on the expected receipt (CHF12.3m x futures price), instead?

[@asmarvellous6869]

confused about exchange rates, as we should think buy $ sell $ etc according to bank's perspective or companys's perspective?

[@preproots]

Always consider yourself at adverse position ( Golden Rule), think according to company, less receipts and higher payments