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ACCA F9 lectures ACCA F9 notes
November 27, 2016 at 12:53 am
Sir, watched your lectures for the second time on exchange rate risks as i have exam after a week almost. then watched this video for interest rate risk. what i understood from exchange futures example can be briefly worded as:
we buy futures (virtually) of the amount of foreign currency we need to pay in future. wait till the date when we actually need to make the payment. if exchange spot rate rises on that day the future rate will too rise. we simply convert using the spot rate and ask the futures dealer to sell the futures we bought earlier. the profit we make by selling futures at high price cancels the loss we make by paying at high rate. FIRSTLY AM I RIGHT AT THIS?
after watching all the videos for foreign exchange risks, watched this video too.. understood everything until you talked about interest futures. listened to it twice and could learn as stated below (briefly):
if we are to take a loan in future off 800$ (2 months later) , interest rates maybe anything at that time, we simply keep it at risk and buy interest rate futures today. after two months, the day when we need loan, if there’s a rise in interest rate (hence, loan will cost us higher) there will be reduction in futures prices and a fall in interest rates increases futures prices.
how does it save us sir? i listened to it so carefully again and again but couldn’t understand it. Can you please help me. what did you mean, when you said we start a deal today end it on the day when we need loan? i have read the technical article relating to the topic also, still couldn’t understand.
John Moffat says
November 27, 2016 at 5:13 am
You must not ask great long questions like this as a comment on a lecture.
Please ask it in the Ask the Tutor Forum.
November 27, 2016 at 10:57 pm
as i wanted to relate my question to specific video in this page so asked here. sorry sir. will ask it in tutor’s forum. i apologize for it 🙁
October 17, 2016 at 11:00 am
brilliant lectures !!! you are the best !!
October 17, 2016 at 1:20 pm
Thank you very much for the comment 🙂
August 26, 2016 at 4:13 pm
Thank you Sir for your amazing lecture
August 26, 2016 at 4:17 pm
And thank you very much for the comment 🙂
September 9, 2016 at 1:44 pm
I have just attended F9 examination.Almost every question is included in your lecture.And I feel Section C is easy to answer because you have made it very clear.I have confidence in passing F9.Really appreciate your help!
September 9, 2016 at 6:10 pm
Thank you for the comment, and I am really pleased that my lectures were of help 🙂
July 27, 2016 at 2:01 pm
Thank you for all these beautiful and clear lectures, you have such e gift Mr Moffat.
Please, never stop teaching 🙂
July 28, 2016 at 6:58 am
June 10, 2016 at 3:39 pm
You’re the best!
I just finished my f9 paper today and I’m soo confident that I’ll clear it. Can’t wait for results to come out?
The Lecture videos helped me a million!
I owe all my marks to you.
Thanks again 🙂
June 10, 2016 at 3:45 pm
May 24, 2016 at 8:02 am
Amazing teaching! This paper used to be a real pain before we found you! You’ve made this paper easy as pie! Thank you so much John!
May 24, 2016 at 12:17 pm
Thank you for the comment 🙂
February 29, 2016 at 4:03 pm
Some Companies in Viet Nam are now using forward and swaps for foreign currency for hedging exchange rate, and using CCS for interest rate hedging. I didn’t understand what they are, and how can they combine together to hedging the risks for interest rate and foreign exchange rate..
in your lecture, you talk about forward, swap, and interest rate hedging briefly and quickly. you don’t mentioned calculation detailed and clearly. So, could you please help me to make me clear about using CCS for hedging of risk of interest rate, and combine using swap and forward for hedging risk of exchange rate,and to calculate them. if you have any materials that mentioned these above, could you please give me for my studying with many thanks.
my company is tending using above instruments for hedging risks, but i am still not clear about these, and didn’t know how to apply these instruments well. My company have export revenues in USD, and also make loans from bank.
Tearcher, Could you please help me. I am very appreciated from your help.
February 29, 2016 at 7:54 pm
What is in the lecture is what is needed for the ACCA exam. I am sorry but we cannot give practical advice in addition.
February 29, 2016 at 3:38 pm
First of all ,thanks for all the amazing lectures. I have just completed watching all the lecture of F9. You have really made the topic very simple and easy to understand. Also a really great thing is that you are offering these lectures free of cost to all the students out there. Appreciate you for doing that.
PS. You are an amazing teacher.
February 29, 2016 at 7:53 pm
Thank you very much 🙂
January 27, 2016 at 6:54 pm
Is it still the case that this topic hasn’t been asked and if it does come up that it can only be a theory based question?
January 28, 2016 at 7:58 am
It has been asked, but only as a written questions. You cannot be asked calculations on interest rate risk in paper F9.
February 1, 2016 at 6:54 pm
Thanks very much for the reply John.
December 13, 2015 at 5:05 pm
Thank you very much for your great lectures sir. I did well on my exam. ?
December 13, 2015 at 9:26 pm
You are welcome, and I am pleased that you did well 🙂
May 8, 2014 at 8:48 pm
So, Its End of the F9 Lectures, the best lectures up till now I ever saw, Thank you Sir John, Previously I made up my Mind to take P5 and P7 as Options later but Now I am Seriously thinking to Take P4 too as an additional, I never thought I would Love F9 This much only Because of YOU 🙂 , If I Pass this Paper Insha’allah on First Attempt then It will be confirmed That I will take P4 in future 🙂
August 10, 2014 at 1:11 pm
And its Confirmed, Thank you So Much Sir John I passed F9 and now I will Definitely Pick Paper P4 as 1st optional Paper, Will see you again on Paper P4 thanks again Sir 🙂
August 10, 2014 at 4:58 pm
I am very pleased indeed for you (and I look forward to seeing you for P4 🙂 )
November 29, 2013 at 7:51 pm
hello sir…. can you give me the good revision questions? of all F9….iam waiting for your reply
November 29, 2013 at 7:56 pm
All of the exams for the past 4 years are worth looking at again (with less emphasis on the June 2013 exam – he does not usually repeat many things in the next exam).
It would be wrong to suggest questions on specific topics – the examiner tests as much as he can in each exam.
However, if you look at the exams for the last 4 years then he has covered in them just about everything he is likely to ask this time.
November 29, 2013 at 9:20 pm
thnaks ,,,,,but sir you have mentioned as these question,, ,. Are these listed below questions have worth,?,, they all are below 2008 past papers,,,,
December 2002 – Q4 – Leaminger – Lease & Buy / Capital rationing
June 2003 – Q1 – Springbank – NPV / ratios
June 2003 – Q3 – Velm – working capital management
June 2003 – Q4 – Tagna – efficient markets etc
December 2003 – Q1 – Doe – working capital management
December 2003 – Q3 – Basril – Capital rationing
June 2004 – Q1 – Nespa – NPV etc
June 2004 – Q2 – Blin – working capital management
June 2004 – Q4 – Arwin – Gearing
December 2004 – Q3 – Tirwen – rights issues etc
December 2004 – Q5 – Umunat – risk and uncertainty
June 2005 – Q1 (not part (d)) – ARG – NPV / foreign exchange
June 2005 – Q4 – RZP – shareholders ratios
June 2005 – Q5 – TNG – working capital management
December 2005 – Q1 (not part (e)) – BFD – NPV etc
December 2005 – Q4 – AGD – lease and buy
December 2005 – Q5 – Thorne – cash budget
June 2006 – Q1 – Merton – working capital / sources of finance
June 2006 – Q5 – Charm – NPV
December 2006 – Q1 – Hendil – sources of finance
December 2006 – Q2 – Replacement / capital rationing
December 2006 – Q3 – Anjo – working capital management
June 2007 – Q1 (not part (e)) – GTK – NPV / sources of finance
June 2007 – Q4 – TFR – sources of finance
June 2007 – Q5 – PNP – working capital management / foreign exchange
November 30, 2013 at 2:23 pm
All of those questions are worth doing (if you can find them).
I was assuming that you had already worked through a Revision/Exam Kit and wanted to look at some again before the exam.
First do attempt the recent exams – although it has been the same examiner throughout, it is best to be used to his current style of questions.
December 1, 2013 at 12:09 am
i have done all above questions,,,,but few questions i have not found,,,, i wanted to ask that , at this situation , i have practiced more than , 30 questions,,,but i feel that i forget many rules and formulas,,, because you know 4 days left,,,,i cannot revise the all 30 questionss,,,,i am finding 4 to 5 questions which covers all syllabus ,,,, tell me which 4 to 5 past papers covers all f9,,,,,,iam waiting of your reply
December 1, 2013 at 7:47 am
There are not 4 or 5 questions that cover all the syllabus.
Working through the recent papers is the best, concentrating more on the written parts, since that is likely to be 50% of the marks.
October 26, 2013 at 6:47 pm
Does anyone know if we are allowed to write in capital letters in the exam? Thanks
October 27, 2013 at 8:15 am
Yes you can 🙂
October 27, 2013 at 1:07 pm
October 22, 2013 at 2:41 pm
hello:) i dont understand the calculation in example 1, about the first step…i have no idea where the 6/3 came from?
October 22, 2013 at 3:07 pm
This is explained in the second paragraph of section 6.1.
The profit or loss on the futures is always calculated as though it is 3 months interest and so it only protects for 3 months.
Since the loan is for 6 months then they way we hedge the risk using futures it to increase the futures that we deal in.
The amount of the futures deal is always the amount of the loan x length of loan/3
(Remember that you cannot be asked calculations on this in F9 – as the lecture says, the examples are only there to illustrate how interest rate futures work)
September 23, 2013 at 5:23 pm
hello, i do not understand where the 400 came from in the calculation in example 1. Plz explain, thanks.
September 23, 2013 at 5:47 pm
The rule is that when we calculate the profit or loss on the futures, we calculate it as though we are calculating 3 months interest (because they are ‘3 month’ futures).
So, we divide by 100 to make it a percent. However that would be a yearly interest. We divide by another 4 so that we have 3 months interest (there are 4 lots of 3 months in a year).
I hope that makes sense. However, do appreciate that you cannot be asked calculations on this in Paper F9 – the example is only there to show you the idea – and so do not worry too much.
In Paper F9 you can only be asked (as part of a question) to explain the idea behind using futures.
September 25, 2013 at 4:18 am
thank you sir, yes it makes sense.
SICHIILA INTEME CHONGA says
September 19, 2013 at 3:38 pm
I very much appreciate the work u doing…..may you be blessed
August 12, 2013 at 6:35 am
i am little confused about which paper to pick p5 or p7 what do you suggest sir john
August 12, 2013 at 6:55 am
It is difficult to recommend because everybody finds different things easy or hard.
P5 follows on from F5 (but with a lot more writing and fewer calculations). P7 follows on from Paper F8.
It really depends a lot on how you found F5 and F8 – it might be sensible to choose the paper that follows from whichever you found easier of F5 and F8.
Also, have a look at the past two or three real exams for P5 and P7 (on the ACCA website) to get a feel for the level of difficulty.
August 8, 2013 at 6:07 am
i have passed f9 58% just becuse of sir john moffat thank you SIR
May 13, 2013 at 9:32 pm
I am very grateful that I have had a pleasure listening to all your F9 lectures. I have found them very helpful and thanks to you I better understand FM now. Sir, you are an exceptional example of what good teaching is. Thank you very much. Now, thinking of attempting P4! Best Regards,
May 8, 2013 at 2:14 pm
I have learned this far that both Forward contracts and FRAs are OTC. Could there be any chance that they are negotiable?
May 8, 2013 at 6:57 pm
No – they are not negotiable. (Futures and traded options are, but these are not until P4 🙂 )
May 9, 2013 at 9:11 am
Thanks John. Then, I cant wait for P4
May 9, 2013 at 5:13 pm
February 22, 2013 at 5:21 pm
thanks john hope to see you in p4. you make my life much more easier.thanks a lot OT
December 5, 2012 at 12:39 pm
oopps ! the page you were looking for has moved?
December 5, 2012 at 1:46 pm
No, your download manager or browser breaks the connection
December 5, 2012 at 8:03 pm
@naveed88, oka i got it ,,,thanx alots
November 30, 2012 at 4:46 pm
Thanks John….wonderful lectures. I guess see you soon….. with P4
November 22, 2012 at 3:47 am
thanks for everything john,,, you really have made my life easier…
i appreciate so much.
May 22, 2012 at 3:06 pm
An Awesome explanation of F9…comes to an end…hopefully see you in P4…
Thanks a lot Mr. John Moffat !!!! 😀
May 16, 2012 at 7:50 am
Sorry I have a problem with example 1
In the line ‘profit on futures’
Where does the figure come from?
Can anybody help me please?
I’m rather confused by that calculation.
May 7, 2012 at 4:51 pm
aWSOME lec Sir!
April 17, 2012 at 4:32 pm
i cant the video
December 8, 2011 at 11:18 am
I can see it….
December 5, 2011 at 3:24 pm
i cant view this video plz…………..help…………..its the last i wanted to see
December 5, 2011 at 3:34 pm
@arjunudayp91, Please visit the support page: http://opentuition.com/support/
December 7, 2011 at 2:26 pm
@admin, still not available when adobe flash installed, does the browser matters?
December 7, 2011 at 5:12 pm
If you are in China, you have to use VPN
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