money market hedgeForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › money market hedgeThis topic has 1 reply, 2 voices, and was last updated 14 years ago by Anonymous.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts May 25, 2010 at 6:30 pm #44146 chubbybaiParticipantTopics: 1Replies: 1☆what the steps May 25, 2010 at 8:06 pm #61127 AnonymousInactiveTopics: 1Replies: 87☆☆Money Market Hedge[/u]If a Debtor(1)Borrow x $ now ($ Loan Principal + Interest cancelled out by future $ debtor receipt)(2)Convert x $ now (to £) (Borrow $ – to convert now – to place on Deposit in £)(3) Add Deposit Interest (£)If Creditor(1) Deposit x $ now ($ Deposit Principal + Interest pay/cancel out future $ creditor payment)(2) Convert x £ now (to $) (Borrow £ – to convert to $ now – to place on Deposit in $)(3) Add Loan Interest (£)Hope this now makes all of the past F9 Exam questions a little easier for you now, PeterAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In