• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

i wanna help for money market hedge method calculation,plz help!

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › i wanna help for money market hedge method calculation,plz help!

  • This topic has 2 replies, 2 voices, and was last updated 13 years ago by antido.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • October 21, 2011 at 11:50 pm #50182
    antido
    Member
    • Topics: 16
    • Replies: 28
    • ☆

    when doing question of risk management,we must be familiar with exchange rate,especially so called money market hedge methods.eg.1£=1.55±0.02$.this confuse me as i really wanna know when we use “+” and when we should use “-” when converting the currency?anybody will help me,plz!

    October 23, 2011 at 6:43 am #88992
    Anonymous
    Inactive
    • Topics: 0
    • Replies: 27
    • ☆

    The easy way is to remember that the bank will use the rate that is not in your favor. From your example, you have rates 1.57 or 1.53 USD per GBP.

    If you are converting GBPs into USDs, the bank would give you 1.53: the rate in the bank’s favor.

    If you are converting USD into GBP, the bank would use 1.57. Again, the bank wins.

    In each case, the bank converts using the rate to your disadvantage.

    November 3, 2011 at 1:53 pm #88993
    antido
    Member
    • Topics: 16
    • Replies: 28
    • ☆

    thanks a lot~

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • Moliselumka on MA Chapter 1 Questions Accounting for Management
  • Luqman12 on The use of computers in accounting – ACCA Financial Accounting (FA) / FIA FFA
  • TAssi07 on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)
  • tules on FM Chapter 3 Questions – Management of working capital (1)
  • John Moffat on The management of receivables – Change of policy – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in