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Thank you, make sense now. I’ve never seen a question examined in that fashion before, thats why I got confused, I’ve learnt futures in a methodical way without understanding the underlying logic that well. I did well on theory, hope I secure a pass.
To obtain the contract, all to do was divide 202m by 5m. Then we had to find the gain or loss on futures but the currency was denominated in Indian Rs per 1 euro, after finding the gain, I think I should have converted the loss in US dollar using the predicted spot rate (which is the current futures price) then multiply by no of contracts and contract size, another way of doing this is multiplying the loss in indian rupees x no of contract x contract size then divide the amount obtained by futures price or predicted spot rate (which are the same). I had no clue how to work out the amound underhedged.
The hedging part was a let down, I thought I mastered futures but the question was twisted, provided contract in indian rupees and I’m sure it confused a lot. I think the loss on futures had to be converted in dollar and then multiplied by no of contracts and contract size to get the correct figure. I didn’t convert to dollar and rushed through it. The question resembles a previously examined question namely Washi which came out in sep 18. The futures however were denominated in the local currency which made it simple. Totally disappointed, I revised AFM for months and didn’t expect a question of such sort.
Lease useful for trading , i think the answer was D, its customer’s poll and review. Trading is concerned with Profit, therefore competitor’s price and market share.
Hey i got 1.40 too. I added total labour cost which was already given in the question and divided by total minutes,
I found section A and B quite easy. What was the answer to the relevant costing question in section A, did you have to add materials with variable overheads (spare capacity machine hours) ? And what was the answer to environmental , was it prevention cost. Anyway I got C for the first four mcq in section A. There were lots of Cs in section A for me. I sat for the paper base. Btw the Ev question was terrible. Balance Scorecard was quite fair.