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 $532,005
the 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!
ACCA Forums
FMHelp - is the answer wrong?
9y ago#1You 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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