- November 28, 2015 at 11:10 am #285886
Q1) Under Forex, the examiner will ask calculations only on both forward and money market hedges ryt?
Q2) Under interest risk, the examiner wont ask any calculations but we should know the theory FRA IRG INT Futures and options ryt? including swaps also?
What more can the examiner test on both these topics?, I have watched your lecture just a doubt pls help?November 28, 2015 at 11:52 am #285896
1. Correct (and netting as well, but that is easy and obvious)
2. Correct – no calculations, but being aware what they are.
3. He also expects you to know about foreign exchange futures and options, but there will not be calculations on these.November 28, 2015 at 4:34 pm #285974
thnks alot :), but netting how do work on calculations?November 28, 2015 at 5:52 pm #285996
If the is a payment of $100 in 6 months time, and a receipt of $70 in 6 months time, then you simply net them off and you are at risk on a net payment of $30 in 6 months.
It is on this $30 then you would then look at forward rates or money market hedging.November 29, 2015 at 4:17 pm #286165
Thats great, got it thanksNovember 29, 2015 at 4:47 pm #286176
- You must be logged in to reply to this topic.