Money Market Hedge -- Easy Exam Technique | ACCA FM F9 | Question Newden

Learn how to construct a Money Market Hedge quickly and efficiently, using question Newden as our example. This is a challenging topic and is regularly examined in ACCA FM / F9. I also show you how to deal with choosing the correct exchange rate, and how to calculate a forward rate agreement. This video is full of guidance and tips to help you understand easy exam technique for a money market hedge and pass the ACCA FM / F9 exam.
Download question Newden here: bit.ly/3BALrup
Good luck on your upcoming ACCA FM exam!
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Table of Contents:
00:00 - Introduction
02:31 - Forward Contract Explained
02:59 - Money Market Hedge for a Receivable Explained
04:03 - Money Market Hedge for a Payable
06:21 - Choosing the correct FX Rate
07:47 - Constructing the Money Market Hedge
10:35 - Calculating a Forward Rate Contract
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Steve Willis ACCA www.stevewillistraining.com
How to pass ACCA CBE Exams
Money market hedge explained
For more on this on ACCA PM CVP, check out Open Tuition • Money market hedging -... Find many other great videos on James Wright ACCA / jameswrightacca
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[@fedemenni]

got my FM exam this friday and your tutorial has actually helped me a lot, much appreciated Steve!

[@SteveWillisACCA]

Best of luck!

[@davidduncan1567]

Steve you are the best! This was so helpful. Thank you.

[@SteveWillisACCA]

Glad it helped ☺️

[@wasifbhaukaurally2085]

Incredible simple explanation of this complex concept, thank you.

[@SteveWillisACCA]

Gald it helped :)

[@AndrasRemenyiACCA]

Very simple way to explain this complicated concept Thanks for the video Steve

[@SteveWillisACCA]

You are welcome

[@zakkhan6095]

Hi Steve, great to see you're active again

[@SteveWillisACCA]

More to come!

[@fahadmunib1817]

Amazing thank you so so much for this.

[@SteveWillisACCA]

Glad it helped! Good luck :)

[@muctarrjalloh7137]

thanks for this brief but very important help

[@SteveWillisACCA]

Good luck on your upcoming exam!

[@ebrahimalam2575]

Sir, great respect for you for clearing this tricky topic for me in such a simple way :)

[@SteveWillisACCA]

Glad it helped :) good luck next week!

[@ebrahimalam2575]

@@SteveWillisACCA Thanks a lot!

[@magdamwaniki199]

This was soo helpful. Thank you

[@SteveWillisACCA]

Glad it was helpful!

[@kimberlyjacklin3194]

Do you have any videos or tips on futures at all? This video changed my understanding of hedging and made it so clear to me so any pointers for futures would be great

[@SteveWillisACCA]

Hi, I don't have a video on futures, I'm sorry to say. But I will put this on my list. Good luck on FM!

[@laurenciam2i459]

Thank you sir

[@SteveWillisACCA]

You're welcome:)

[@emilyfau-goodwin9273]

Thanks for the video this is great. Do you have any examples where you also include a WACC %? Some of the questions I have looked at for my exam also include this. I'm just a bit unclear where I should use it when doing a MMH?

[@SteveWillisACCA]

Cost of capital doesn't come up when doing a money market hedge. You only need borrow/deposit interest rates and spot rate. Cost of capital is used when we need the required return of the capital providers of the company.

[@KCWONG-do4db]

Sir, hopefully, you will also teach us some AFM in future, e.g. trade futures, trade options or swap. 😊 Money market hedge is quite tricky as well.

[@SteveWillisACCA]

Great idea!

[@KCWONG-do4db]

I will probably take APM in September, will you have any youtube channel for APM, especially those on variances and other APM exam key topics reviews.

[@lewis1689]

I Steve, thank for your videos - they were the reason I passed PM and I have FM this coming Friday. Worth just double checking with you, the deposit rate calculattion - when I do (1.046*3/12) i get 0.2615. To get 1.0115 it would need to be 1+(0.046*3/12). Is this correct?

[@SteveWillisACCA]

This is from a money market hedge, yes? 1) get the quaterly interest rate, so if 4% per year, 1% per quarter. Then add it to 1...1.01

[@quietside1380]

Any videos for UK-TX?

[@SteveWillisACCA]

Unfortunately that's not my specialty

[@kgalalelomatlhare6215]

Hello steve , not too sure if my replies reach you . How do I join a full acess fm class

[@SteveWillisACCA]

Hi, I'm sorry, I don't have that this term. Just my youtube videos.