Choosing currency hedge strategy for payment instead of receivable per question

TThang3y ago

Hi everybody, I have just finished my AFM exam today. In hedging for currency question information that there is receivable to be hedged. I misunderstand the question that there is a payable. In case that my calculation (in choosing rate, type of option) and discussion is reasonable for a payable. Could I gain any mark for this question. Thanks in advance,

MmrjonbainModerator3y ago#1

Was going to suggest that you ask this particular question to the tutor as tutor would be more likely to be able to accurately answer. I then saw that you have done so already. For what it's worth I agree with the tutors answer. I would imagine you would gain some credit as essentially you have just described the mirror image of the strategy for which the exam question was asking you. I would in any event try not to worry about your error.

MmrjonbainModerator3y ago#2

For anyone coming across this thread, the tutor's answer to above can be found on the following thread- https://opentuition.com/topic/choosing-currency-hedge-strategy-for-payment-instead-of-receivable-per-question-2/