Forward rateForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Forward rateThis topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts June 2, 2021 at 6:36 pm #622823 AshleyMarc1997MemberTopics: 48Replies: 24☆☆Is it true that we can calculate Forward rate by:Forward rate = Receipt or Payment / Money Market HedgeIt is because the Money Market Hedge is totally equivalent to the Forward rate? June 3, 2021 at 6:51 am #622870 John MoffatKeymasterTopics: 56Replies: 53823☆☆☆☆☆Using forward rates is equivalent to using a money market hedge.However it is certainly not calculated using the expression you have typed (a money market hedge does not result in a number).Forward rates are calculated using the interest rate parity formula provided in the exam, as I explain in my free lectures on this.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In