leading payment

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August 21, 2018 at 8:01 am #468698
ayeshatabani
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Dear sir, please correct me if I am wrong.

We can pay early or lead payments in order to hedge exchange rate risk.

However when we encourage the customer to pay early (because we are an exporter), would this too be termed as leading?
August 21, 2018 at 4:37 pm #468753
John Moffat
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Yes, although in the exam you will not be expected to define either leading or lagging separately. You can just be expected to explain the idea (no numbers) just as I do in the lectures.
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