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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Bpp f9 revision kit Q298
In the solution, hey have specified that the receipt of $500000 need not be hedged. Why is this so?
You only hedge is there is risk of exchange rates changing.
Since the company uses the $ as its currency, and since the receipt is 500,000 $’s, then exchange rate movements are not relevant!!!
It is only the euro payments and receipts that have risk.
Got it. Thank you 🙂
You are welcome 🙂
