Forum Replies Created
- Posts
Hi, just like to know if it is true that you have taken paper p7 for three times already? I thought of taking this paper in the month of September, 2016 but I am not so sure now.
Just wondering if it is so tough?
Thks.
Hi Basher,
Now, I know that I have just so little knowledge and understanding about hedging against foreign currency exposure.
I need to do some homework now perhaps of what you have written thus far.
Thank you so much and Good Luck!
Hi Noor,
My apology as the last time I thought it was a put option, but it is a call option.
Congratulations, you are likely right. So keep your fingers crossed.
Good Luck.
Hi Hans,
Thank you for giving your share of thoughts and opinion.
It has helped me to understand that I have gotten the question wrongly thus not providing the right answer.
This least I know now – I best not waste time preparing for other papers as I will have to resit this paper P4.
Thank you once again and Good Luck to you when the result is out on 18th April, 2016.
Well guys, my special to thanks to you as I am enlighten with the fact that I did badly as I was not aware about my gravely wrong interpretation especially in the area involving foreign exchange hedging.
I guess I have to start continuing practicing any questions that I can get hold on for this paper P4. I believe I will need to resit it as I did not only get this question so wrong but other
questions as well.Thank you guys for sharing your thoughts particularly, Hans, for bringing up the matter in relation to hedging against foreign currency exchange.
Yes, George, your right! It is about hedging against the depreciation in the Euro exchange rate against the US$ Dollar currency and therefore to hedge using the ‘PUT’ option – the right to sell at the predetermined fixed rate only if the exchange was to moved adversely – the option is to be exercised.
Good Luck!
Yup, your friends are likely correct in saying that it should be the June contract but nevertheless, you could have done well in other questions perhaps enough to walk you through to a passing mark level.
Just keep your fingers crossed just like myself as I did a blunder too for cancelling out here and there and making it relatively difficult for the examiner to marking my answer script.
All I can say now is Good Luck to the people like who could have done better just to ensure we are able to secure that very important passing mark.
Hi there, Danielle and Ahmed Bashir are right; it is supposed to be a PUT option as it is a situation of hedging against the depreciation in the Euro currency in exchange for the US Dollar.
And therefore, should the Euro currency was to move against the company, it is able to ensure the minimum receipt in the US Dollar currency.
Hi there, no worries, the marking scheme isn’t quite like that. Just for one P/E ratio or any other figures, you will not be penalized wholly instead just the allocated mark.
The examiners would like to see your presentation and your understanding in tackling the particular scenario, thus you will still be rewarded with marks for your remaining answers although these figures isn’t right in its own right.
No worries, my friend and Good Luck when the result is out this coming 18th April, 2016.
Hi, mu guess is, you will make it . At least, to the best of my knowledge, you did better than me.
You actually brought me to light as to what I did not know was expected of me.
Well then, Good Luck on this coming 18th April, 2016!