Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Risk management
- This topic has 4 replies, 3 voices, and was last updated 2 years ago by John Moffat.
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- September 22, 2022 at 10:46 am #666973
Sir I have a doubt in below two statements
Buying both interest rate cap and floor is example of interest rate collar
and Interest rate is future hedge can be closed out any timeFrom the above two statements
Which is the most suitable answer sir
Because both statements are correctSeptember 22, 2022 at 3:03 pm #6669992nd option is more relvent
September 22, 2022 at 5:29 pm #667016salman6565: Please do not answer in this forum because it is the Ask the Tutor forum and you are not the tutor 🙂 (But please do help people in the other Paper FM forum).
johnbriane: You have asked this before, and I have answered you before. The second statement is most suitable (because interest rate futures can be closed out at any time up to the date of maturity of the future).
September 23, 2022 at 3:05 am #667049And sir I have one more concern .
When I asked Few of the tutors they told
Futures have fixed close out dates
And they areEnd of march
End of June
End of September
End of DecemberAre these somewhat related to futures sir
I’m so confused
September 23, 2022 at 7:16 am #667057Yes they are the maturity dates and I explain about this in my lectures!!!
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