- This topic has 1 reply, 2 voices, and was last updated 2 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
For a hedging question with forward and option contract :
1. When calculating number of contract, the figures should be always round down ?
2. If the question does not say that amount unhedged or over hedged should be hedged using forward market, Can I always assume that in the exam ?Thank you
1. In the exam it doesn’t matter whether you round up or down. I always round to the nearest whole number.
2. You should always mention that the over or under hedge could be hedged using forward rates (otherwise there will still be some risk). If you have the time and if forward rates are given in the question then show the arithmetic as well.
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.