Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Interest rate hedge
- This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
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- May 25, 2021 at 9:12 am #621719
Sir May i ask for the interest rate hedge to identify in or out the money is it using the same principle as foreign currency hedge?
Example, put option will in the money when the option price is higher than the price of underlying asset.
May 25, 2021 at 1:59 pm #621742Interest rate options work differently than currency options, because they are options on futures.
My free lectures on interest rate risk management explain all the different ways of hedging against interest rate risk (of which the use of options is just one).
May 25, 2021 at 2:07 pm #621747Thank you sir!!.
May i ask another question about BPP workbook chapter 14 activity 1. The answer for VC i not so understand on it.
What actually means: In total this gives total loans of $4450000 include the bond secured on property comfortably cover the full value of the debt ……. until high level of risks?May 25, 2021 at 2:12 pm #621750I am sorry but I do not have the BPP workbook – only the BPP Revision Kit.
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