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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Which method for interest rate hedge?
While solving a hedging question for interest rates, does it matter if i calculate the interests in a percentage and directly reach the effective interest rate percentage for the futures and options calculation? Or do i need to calculate every amount applying the interest rates? I find calculating keeping the interest rates in a percentage to find the effective interest rate method much faster and shorter as it avoids extra calculation. Will it affect my marks?
Good question I was wondering about that too after doing Phobos Co 12/08
Unless the question specifies an approach, then either will get the marks 🙂
Thank you! 🙂
You are welcome 🙂