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John Moffat.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Kenduri Co
Sir, in Forward hedge why are we using the lower rate of 1.5996 instead of 1.6037, as bank always gives less and takes more
Kenduri is making a new payment of $’s and therefore they are buying $’s which means we use the first rate of 1.5996.
(If we used 1.6037 it would cost Kenduri less in Pounds, which cannot be the case.)
Have you watched my free lectures on how to decide which rate to use?