# Foreign Exchange Risk Management (part c)

 View all ACCA Paper F9 lectures >> This ACCA F9 lecture is based on OpenTuition course notes, view or download lecture notes here>>

1. says

Sir what about PYQ DEC2008 Q4 C) why is the 16m not taken into account when calculating the deposits?

• says

It was not asked for. Part (c) asked you only to consider the future payment that will be made.

• says

thanks alot was confused earlier 😀 did not read the question properly 😀

2. says

What a Great Lecture! Love You Sir John <3

I have 1 Question to ask, The Interest Rate for 3 Months you calculated 1.45%, Instead of writing 0.0145 (1.45/100) why you wrote 1.0145? similarly in 0.9% interest rate you wrote 1.009 instead of 0.009? it is a rule that you add 1 to every interest rate or am I missing something?

• says

Multiplying by (say) 1.01 is the same as adding on 1%. Multiplying by 1.02 is the same as adding 2%, and so on

3. says

Query: When i calculated my interest for the 3 months it was 0.9% (3.6* 3/12)….

I am not clear why it is that when you were calculating the interest it was 3,194,954 x 1.009 and not 3,194,954 x 1.09.

4. says

Refer to the recent Mock Exam Questions, Q1.

Where redeemable debt was being mentioned as repayable at 10% premium after 10 years?

5. says

hi there
Awesome lecture
just one query !
when we hedge a receipt , in the third step, when we multiply £ 3194954 with the interest rate we get £3223709. this amount is greater than what we require, the extra is the interest we received right? so why don’t we deposit an amount which after adding the interest becomes £ 3194954 ?? ie by dividing the amount by the interest rate ??

• says

(We don’t have a specific requirement for receipt of pounds)

• says

Yes I saw it , Thank you soo very much!!! I can finally move to the next topic. The lectures n the website are amazing. Thanks again !

6. says

Thanks for all the efforts put into these lectures and all other resources provided by open tuition. God bless!

7. says

sir….u said that lower interest rate is used for when you are borrowing money and higher when you are depositing money…so in example 6 instead of using 5.2% you used 5.8%…can you explain why? or is it am i understanding this wrong…thank you

8. says

I am now 31 years old….I have done only 6 subject…am I too old to get a training job? I am confused…

9. says

if i get a chance i would kiss you …………..
jokes apart……… want to see knighted by the queen of england……………..u r a boon to students……guess what… i pay and get sub standard lectures…………………

• says

Well, after exam, get to work 😉 I’m sure John would be surprised haha 😉

Good luck in December exams 😉