ACCA F9 - hedging techniques for interest rate risk |

GET ACCESS TO ALL ACCA VIDEOS FROM F1/BT to AAA/P7:
Step 1: Subscribe to this channel.
Step 2: Send the word "Link" to [e-mail]
This is the 4th video in the series of Five [5] covering section F of ACCA’s F9 - Financial Management consisting of:
1. The nature and types of risk and approaches to risk management
2. Causes of exchange rate differences and interest rate fluctuations
3. Hedging techniques for foreign currency risk
4. Hedging techniques for interest rate risk
Watch full playlist here: • FM [F9] | G: Risk mana...
Download ACCA F9 2022 - 20233 Syllabus here: www.accaglobal...
_____________________________________________________________________________________
On successful completion of this video, you will be able to:
1. The nature and types of risk and approaches to risk management
a) Describe and discuss different types of foreign currency risk:
i) Translation risk
ii) Transaction risk
iii) Economic risk.
b) Describe and discuss different types of interest rate risk:
i) Gap exposure
ii) Basis risk.
2. Causes of exchange rate differences and interest rate fluctuations
a) Describe the causes of exchange rate fluctuations, including:
i) Balance of payments
ii) Purchasing power parity theory
iii) Interest rate parity theory
iv) four-way equivalence.
b) Forecast exchange rates using:
i) Purchasing power parity
ii) Interest rate parity.
c) Describe the causes of interest rate fluctuations, including:
i) Structure of interest rates and yield curves
ii) Expectations theory
iii) Liquidity preference theory
iv) Market segmentation.
3. Hedging techniques for foreign currency risk
a) Discuss and apply traditional and basic methods of foreign currency risk management, including:
i) Currency of invoice
ii) Netting and matching
iii) Leading and lagging
iv) Forward exchange contracts
v) Money market hedging
vi) Asset and liability management.
b) Compare and evaluate traditional methods of foreign currency risk management.
c) Identify the main types of foreign currency derivatives used to hedge foreign currency risk and explain how they are used in hedging.
4. Hedging techniques for interest rate risk
a) Discuss and apply traditional and basic methods of interest rate risk management, including:
i) Matching and smoothing
ii) Asset and liability management
iii) Forward rate agreements.
b) Identify the main types of interest rate derivatives used to hedge interest rate risk and explain how they are used in hedging.
__________________________________________________________________________________________________________________________________________________________________________
Subscribe to this channel / @financeskul
_____________________________________________________________________________________
Transcript:
Tags:
#acca course
#acca f5
#acca f6
#acca f7
#acca f8
#acca f9
#acca SBL
#acca SBR
#acca APM
#acca AFM
#acca ATX
#acca AAA
#cima course
#cma exam
#accountancy
#performance management
#cpa exam Tags:
#accacourse
#accaf5
#accaf6
#accaf7
#accaf8
#accaf9
#accaSBL
#accaSBR
#accaAPM
#accaAFM
#accaATX
#accaAAA
#cimacourse
#cmaexam
#accountancy
#cpaexam
#managementaccounting #financialaccounting #taxation #auditandassurance #performancemanagement #financialmanagement #strategicbusinessleader #strategicbusinessreporting #corporatelaw #businessanalysis #financialreporting
#advancedfinancialmanagement Tags:
#accacourse
#accaf5
#accaf6
#accaf7
#accaf8
#accaf9
#accaSBL
#accaSBR
#accaAPM
#accaAFM
#accaATX
#accaAAA
#cimacourse
#cmaexam
#accountancy
#cpaexam
#managementaccounting #financialaccounting #taxation #auditandassurance #performancemanagement #financialmanagement #strategicbusinessleader #strategicbusinessreporting #corporatelaw #businessanalysis #financialreporting
#advancedfinancialmanagement #advancedperformanceManagement #advancedtaxation #advancedauditandassurance #advancedfinancialreporting #advancedcorporatelaw #accountancy #charteredaccountancy #examtips #studyadvice

[@user-ol3ej1pd4l]

Excellent explanation 👌