Dear Sir,
I can't get my head around firm commitment hedging being fair value hedging. In my head if we have a firm commitment it means we will have future cash flow, thus it should be cash flow hedging.
Would you please put me right and give me some real life example?
thanks
CIMA Forums
firm commitment hedging
8y ago#1Hi,
Cash flow hedges are when we have a highly probable future cash flow, which is slightly different to a firm commitment as this is where the transaction is virtually certain to occur.
Thanks
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