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If Translation Risk can be hedged

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › If Translation Risk can be hedged

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • March 1, 2018 at 7:29 pm #439618
    sunny20
    Member
    • Topics: 33
    • Replies: 27
    • ☆☆

    Hi John,
    If translation risk can be hedged?

    Many Thanks in advance

    March 2, 2018 at 9:49 am #439667
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    Yes. For example, if a UK company has assets in the US (with therefore $ values) they could deliberately organise some of their liabilities to be in $’s.

    However this is not really relevant for F9.

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  • The topic ‘If Translation Risk can be hedged’ is closed to new replies.

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