ILLUSTRATION ON FV HEDGE-MURPHY INC..5 MILLION BOND ISSUE

This topic has 3 replies, 2 voices, and was last updated 5 years ago by Stephen Widberg.

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April 27, 2020 at 2:22 am #569314
misbahkiran
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Hi Sir
This illustration is explained in lecture
my question
is this is over hedged?
as gain on hedged item in 0.1 million and loss on instrument is 0.12 $..
second question
if it’s over hedged shouldn’t we need to take 0.1 in OCI rather profit and loss?
April 27, 2020 at 4:30 pm #569367
Stephen Widberg
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“over-hedging’ only applies to cash flow hedges.
April 30, 2020 at 2:19 am #569577
misbahkiran
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thanks alot for correcting my concept…silly me..
April 30, 2020 at 6:57 am #569581
Stephen Widberg
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Not silly at all. Have a great day.
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