- This topic has 1 reply, 2 voices, and was last updated 2 years ago by .
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › currency options
Sir when it comes to currency options, if we get number of contracts in integer and not as a whole number then we hedge the unhedged amount using forwards. Now I use a different method to solve for options, i square my positions in the options and then take the profit/(loss) from there and then separately convert the actual amount at spot and consider in the premium too. Which is akin to the method you use.
I get minor differences ranging from $200-$1000. Is that fine? Or I am doing it incorrectly and should follow the method of Kaplan only.
What you are writing is fine (and is what I would do in the exam). Minor differences are most likely due to rounding and are irrelevant in the exam 🙂