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Morning sir,
I would like to know what are the risk will involve when the company enters into money market hedge? (other than counterparty and insolvency)
Is there any risk involved when we place the home currency into the deposit to earn interest rate? If yes, what are the risks?
Does money market hedge always available in the market when the company want to use it?? Any restrictions?
TQQ
You have stated yourself what the risks are in your first sentence.
Whether a money market hedge is available depends on the currencies involved and as to whether it is possible to borrow or deposit in a particular currency in the country of the borrower/depositer.
However this really is not particularly relevant for Paper FM and so I really don’t know why you are asking.
The lectures cover everything needed to be able to pass the FM exam well.ya, I have stated counterparty and insolvency risk, so I am asking is there any other risks involved?
ya I know, but I just to hope understanding more about how does money market hedge works.
THANKSSS U A LOT SIR
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