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Hi John,
To determine the number of future contracts required to hedge, we have to calculate the hedge amount first. I am quite confused about which rate I should use to calculate this hedge amount, whether I should convert at spot rate or I should convert at future price on the date of setting up the hedge?
I saw different answers in books and lectures so quite confused which one is right
Thanks
If you want the tutor to respond you should ask in following forum-
https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-advanced-financial-management-afm-exams/
This forum is primarily designed for students to help one another.Hope this helps.
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