the revision practice kit from BPP is for exams sitting from Sep 16 – June 17 will this be valid still to use, as i dont want to purchase an updated one if i dont need to thanks.
Thanks. Could please confirm that the notes provided by opentuition is siffiecent enough material for the exam, providing we have read all the notes and listened to the lectures, and done the revision questions. thanks
Yes, subject to what you mean by the revision questions. You must have a Revision Kit from one of the ACCA approved publishers and have worked through every question – practice is vital both to checking your knowledge and to get used to the style of the examiner. Also, it is worth reading through the technical articles on the ACCA website – certainly the most recent ten of them (but the more the better).
I just didnt want to go waste time reading losts of study material from different providers, i’d rather use the notes & lectures on open tuition and then spend time working throught past papers. As long as we understand the material you have covered the examiner can not question us on other bits correct? thanks
Correct, although he really does test your understanding deeply. When you have finished studying you really must practice every question in your Revision Kit.
I understood how A’s swap arrangement will work with the bank:
A will pay 10% and receive 9.25% from the bank effectively making the same saving of 0.75%
However, the B’s arrangement is confusing me.
B will pay 1.5% and then pay additional 9.25% to effectively get the percentage he/she wanted (i.e- 10.75%), so what is B actually receiving from the bank then?
It is L, but I am a bit confused. Can you also tell what is the L rate here in this question?
I saw your lecture but I can’t calculate the effective interest rate of 5.34%, 5.08%, 4.36% and 4.60% in December 2014 question no. 2 keshi Co? Please can you calculate this for me?
18 minutes of this lecture and i was able to do example 2 on my own. John is one of the few tutors who knows how to transfer the “intuitive” process of the transactions!
You should ask this in the P4 Ask the Tutor Forum, and not as a comment on a lecture. However, if you go to the main P4 page and follow the link to “Revision and past questions” you will find lectures working through several past exam questions including CMC, which will answer your question.
About the first example. X wishes to borrow at L+3% and Y – at 12%. In this case there is no saving, isn’t there? And these parties will not swap, will they?
I have seen you give only where one party pays the other but I have not seen you say what the other party too pays out eg.. A pays 2 and b receives 2, b pays 3 and a receives 3
@ Sir John, Thank you for this amazing lecture. I want to ask that how bank gain benefit from this swap? does it make profit by charging swap fee? Also can you please do a lecture on Collar, caps and floors. Thanks.
Caps, floors and collars are all the ways that options are used – there are lectures on options and also linked from the main P4 page is an article I wrote saying more about collars.
The lecture is working fine, so I don’t know what is causing your problem.
Please go to the support page (the link is below the lecture) and if you do not find an answer there, then ask on that page and admin will try and help you.
It is in the free Lecture Notes. Our lectures form a complete classroom course, and they all use our free Lecture Notes! The link to download the notes is immediately above the lecture.
Jeet says
Thank you for your wonderful lectures, Sir. You are one of the best teachers I have learnt from. God Bless.
John Moffat says
Thank you for your comment 馃檪
kkhatani says
the revision practice kit from BPP is for exams sitting from Sep 16 – June 17 will this be valid still to use, as i dont want to purchase an updated one if i dont need to thanks.
John Moffat says
Yes – it is still OK. (But please post this sort of question in the Ask the Tutor Forum rather than as a comment on lecture)
kkhatani says
Hi am i right in thinking there are no recorded lectures for lectures notes chapters 22 onwards? Thanks
John Moffat says
Correct. These chapters are for you to read yourself 馃檪
kkhatani says
Thanks. Could please confirm that the notes provided by opentuition is siffiecent enough material for the exam, providing we have read all the notes and listened to the lectures, and done the revision questions. thanks
John Moffat says
Yes, subject to what you mean by the revision questions. You must have a Revision Kit from one of the ACCA approved publishers and have worked through every question – practice is vital both to checking your knowledge and to get used to the style of the examiner.
Also, it is worth reading through the technical articles on the ACCA website – certainly the most recent ten of them (but the more the better).
kkhatani says
I just didnt want to go waste time reading losts of study material from different providers, i’d rather use the notes & lectures on open tuition and then spend time working throught past papers. As long as we understand the material you have covered the examiner can not question us on other bits correct? thanks
John Moffat says
Correct, although he really does test your understanding deeply. When you have finished studying you really must practice every question in your Revision Kit.
syfar42 says
I understood how A’s swap arrangement will work with the bank:
A will pay 10% and receive 9.25% from the bank effectively making the same saving of 0.75%
However, the B’s arrangement is confusing me.
B will pay 1.5% and then pay additional 9.25% to effectively get the percentage he/she wanted (i.e- 10.75%), so what is B actually receiving from the bank then?
It is L, but I am a bit confused. Can you also tell what is the L rate here in this question?
John Moffat says
Without swapping, A would have paid interest of 10%. With swapping they end up paying a net 9.25%. So a saving of 0.75%
Without swapping, B would have paid LIBOR + 6.5%. With swapping they end up paying a net LIBOR + 5.75%. So again a saving of 0.75%
L is LIBOR which changes from day to day – so B is paying floating rate interest whereas A is paying fixed interest.
dewan says
hi john
is it going to be ok to format the answer for the swap just like you did in the video.Thanks
John Moffat says
Yes 馃檪
trendline says
The notes in my “approved learning media” on this are appallingly crafted IMHO.
Thank you for making sense of it.
John Moffat says
Thank you – I am glad this helped 馃檪
minhajh says
I saw your lecture but I can’t calculate the effective interest rate of 5.34%, 5.08%, 4.36% and 4.60% in December 2014 question no. 2 keshi Co? Please can you calculate this for me?
John Moffat says
You must ask this in the Ask the Tutor Forum and not as a comment on a lecture.
mansoor says
is it possible to have a lecture on collars?
John Moffat says
No!
However there is a detailed note on collars that I have written. You can find it linked from the main P4 page.
mansoor says
i scoured youtube and no luck.
18 minutes of this lecture and i was able to do example 2 on my own. John is one of the few tutors who knows how to transfer the “intuitive” process of the transactions!
opentuition_team says
not sure why you don’t start with opentuition first time always 馃檪
mansoor says
ha ha.. i do …. i ask so many questions and all the tutors are ready to pull my hair out… at some point or the other 馃檪
tdosen says
great lectures all throughout! thanks for helping me finally understand risk management techniques
John Moffat says
Thank you for the comment 馃檪
ahmadyaad says
Kindly Help me
How to arrange this SWAP with your method.I am not understanding examiner method. CMC co June 2014 Question.
Fixed Rates Floating Rates
2.2% Yield + .4%
3.8% Yield + .8%
Bank Fee = 20 Basis points
John Moffat says
You should ask this in the P4 Ask the Tutor Forum, and not as a comment on a lecture.
However, if you go to the main P4 page and follow the link to “Revision and past questions” you will find lectures working through several past exam questions including CMC, which will answer your question.
ahmadyaad says
I’m Sorry for asking here. I’ll care next time
Thank you for Reply
John Moffat says
No problem 馃檪
artem says
About the first example.
X wishes to borrow at L+3% and Y – at 12%. In this case there is no saving, isn’t there? And these parties will not swap, will they?
John Moffat says
If you are meaning that X wanted to borrow floating and Y wanted fixed, then you are correct – there would be no point in them swapping. 馃檪
artem says
Thanks. I think I’ve got the idea about swap and saving.
manjoof1981 says
thanks
John Moffat says
You are welcome 馃檪
manjoof1981 says
dear John,
I have seen you give only where one party pays the other but I have not seen you say what the other party too pays out eg.. A pays 2 and b receives 2, b pays 3 and a receives 3
John Moffat says
It does not matter how they settle up between themselves – the end result has to be the same, and the end result is all that matters for the exam.
saan says
@ Sir John, Thank you for this amazing lecture.
I want to ask that how bank gain benefit from this swap? does it make profit by charging swap fee?
Also can you please do a lecture on Collar, caps and floors.
Thanks.
John Moffat says
Yes – the bank will charge a percentage as a fee.
Caps, floors and collars are all the ways that options are used – there are lectures on options and also linked from the main P4 page is an article I wrote saying more about collars.
saan says
thank you.
John Moffat says
No problem 馃檪
Alice says
Thank you so much for the lectures.
John Moffat says
Thank you for your comment 馃檪
aayush4ever says
Couldn’t teach any easier.. Amazing quick precise lecture ..
John Moffat says
Thanks 馃檪
sogan0 says
I cant view
John Moffat says
The lecture is working fine, so I don’t know what is causing your problem.
Please go to the support page (the link is below the lecture) and if you do not find an answer there, then ask on that page and admin will try and help you.
sogan0 says
Im sorted please let me know where u get the lecture example
John Moffat says
It is in the free Lecture Notes. Our lectures form a complete classroom course, and they all use our free Lecture Notes!
The link to download the notes is immediately above the lecture.
uuuu says
great lecture Sir….
chandhini says
You have made the concept crystal clear! Thanks a bunch sir! Kudos on the amazing work!! 馃檪