June 2015 MCQForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › June 2015 MCQThis topic has 3 replies, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 4 posts - 1 through 4 (of 4 total)AuthorPosts September 7, 2016 at 9:19 am #338507 acca9MemberTopics: 68Replies: 50☆☆“Borrowers hedging against an interest rate increase will buy interest rate futures now and sell them at a future date”Why is this incorrect? September 7, 2016 at 10:49 am #338540 John MoffatKeymasterTopics: 57Replies: 54701☆☆☆☆☆You need to watch my free lectures on interest rate futures where this is fully explained.As interest rates increase, futures prices will fall. So to make a gain when interest rates increase you sell futures now and buy back at a later date. September 7, 2016 at 10:52 am #338543 acca9MemberTopics: 68Replies: 50☆☆I see. That’s clear now. Thanks September 7, 2016 at 11:03 am #338551 John MoffatKeymasterTopics: 57Replies: 54701☆☆☆☆☆You are welcome 🙂AuthorPostsViewing 4 posts - 1 through 4 (of 4 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In