Foreign Exchange Risk

Hi Mr John,

I just want to ask, is there a possibility of getting a whole 25 mark question about Foreign Exchange Risk ? Because that would be a nightmare!

I mean, I will make sure to be able to write about the whole topic (i have seen included in 2013 tips the interest rate risk) I will also check the calculations in order to be able to fairly attempt a part of a question (if he asks calculations) but since I don’t feel it is as important as the other topics, I don’t want to waste time on it practicing so much specially that I really don’t have time, I am attempting 3 exams this sitting, so I think I better be using this time practicing the questions I know are guaranteed in the exam like investment appraisal, cost of capital and so on.

Please let me know what you think and wish me luck! I have solved June 2013 exam and I wish it was the one to be asked in December, it is fairly good, kind of easy!! I hope the examiner does not have the habit of giving an easy exam followed by a difficult one! 🙂

Thank you!

Maha