Forums › ACCA Forums › ACCA AFM Advanced Financial Management Forums › Hedging
- This topic has 12 replies, 3 voices, and was last updated 11 years ago by ray3026.
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- November 26, 2012 at 5:23 am #55752
My lecturer said swaps will unlikely come out this sitting. Pls guess how the hedging question will look like? Should be around 30 marks.
November 26, 2012 at 6:37 pm #108713i still think it will come out.
my lecturer spot that currency hedging is long overdue…
which school you attending?
raymond
gingerbeer3026@yahoo.com.sgNovember 26, 2012 at 11:51 pm #108714Currency hedging can be futures and options. I won’t study swaps.
My lecturer said currency and int rate hedging can come out together.
I just want to know any more specific areas, especially written part.
LSBF
Sorry, no time for MSN.November 27, 2012 at 4:10 am #108715not asking you for msn. 😛
i am attending kaplan. yes, sami is your lecturer.
esther suspect the risk mgmt topic written by the examiner may come out. it can come out with overseas npv and how you mitigate the risk by investing in overseas subsidiary.
luckily i good in currency and interest hedging. used to attend sami class last round.
BSOP question will come out for section b.
November 27, 2012 at 4:47 am #108716Semi thinks it could be local APV/NPV + BSOP for Q1
Ray, why did you fail last sitting. Any lessons to share?
November 28, 2012 at 4:03 am #108717i had overan the question 1 in 1.5 hours… not enough time to do rest the questions.
the jun paper look weird and difficult, but in actual fact, it is reasonable paper.
time allocation is more important.
you mean type 1 or 2 acquisition for question 1.
November 28, 2012 at 7:49 am #108718Should be investment appraisal for Q1, Sami thinks M&A/restructuring should be in section B, be prepared for transfer pricing, bond valuation, and portfolio theory also for section B.
I hope this sitting can be much easier as next round will change syllabus.November 28, 2012 at 7:58 am #108719Sami did not talk about shareholding risk, but SAA lecturer did.
November 30, 2012 at 5:17 am #108720I do hope this siting is reasonable paper that we can attempt most questions in 3 hours.
Esther from Kaplan actually comment next round should be ok. Only the section b will increase to 25 each…
November 30, 2012 at 6:30 am #108721Will international trade, eg WTO, be important?
November 30, 2012 at 8:12 pm #108722in the question, receipt US 20m in 4 month time, using futures hedge.
So the method should buy (long) the futures. However, the result of the 4 month predict rate is worse than the 4 month forward rate. Therefore we dont do the futures hedge.
** I have a question about this, why i should long the futures because the exchange rate likely linear going up 2 month expiry at 1.3633, and 5 month expirty at 1.3698.
Can i use speculation view ,buy the future contract now (spot rate 1.3618, assume : 1,3625 (1.3633-1.3618)/2 + 1.3625 and sell in the 5 months, then i can make profit .
thank you very much
November 30, 2012 at 9:44 pm #108723I am mentally tired these days. Pls ask the tutor.
https://opentuition.com/groups/ask-the-tutor-acca-P4-exams/forum/December 1, 2012 at 4:26 pm #108724dazhong
i am mentally tired… be patient, we will clear P4 soon… 🙂
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