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i’m looking at the march/june 16 sample questions
question 2 re money market hedge.lock into the forward exchange contract costs $530,176 or
use money market hedge costing $532,005the answer says to recommend the MMH on financial grounds – what the hell, surely the forward exchange would be cheaper?!?!?
is the ACCA answer wrong?
help me please!You must in future as in the Ask the Tutor Forum if you wish me to answer.
However the examiners answer does not say that!! It says : “On financial grounds, the forward market hedge would be recommended.”
The forward market is forward exchange rates – not money market hedging.
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