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KENDURI CO (JUN13)

Aasdasdasd8y ago
in KENDURI CO (JUN13), 1. just by looking at the question, how do we know whether to use market hedge ? is it because borrowing and investing rate indicate money market rate ?
John MoffatJohn MoffatTutor8y ago#1
The question asks to you advise on an appropriate hedging strategy. So you are expected to go through every method for which you have the information available. Since you are given the annual interest rates, money market hedging is one of the strategies available.
Aasdasdasd8y ago#2
that means if i did one of the hedging strategy but if it is not stated in the answer sheet, i will still be able to receive some marks ?
John MoffatJohn MoffatTutor8y ago#3
But that won't happen. For this sort of question you will be expected to show all the methods for which information is available. You are asked to advise, just as you would advise in real life.
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