[rc32]

You are not given the 5 month forward rate so you have to estimate it as if the exchange rate moves linearly

[rc32]

In interest rate hedging, you either borrow or invest. There’s no such receipt. I guess you mean invest. Then it’s:
Invest: call option
Borrow: put option

[rc32]

Thank you very much Mr John for the clarification! Your lectures since I started acca have all been very helpful!

[rc32]

Also, can you confirm that the market value of a company is the value of its equity which means assets minus liabilities

[rc32]

Shouldn’t we include the 12m in the loan? As it’s said the bank has agreed to lend the balance of the required fund.

[Author]

Posts