Money Market Hedge -- Easy Exam Technique | ACCA FM F9

Money Market Hedge -- Easy Exam Technique | ACCA FM F9 | Question Newden

Рет қаралды 13,021

Күн бұрын

Learn how to construct a Money Market Hedge quickly and efficiently, using question Newden as our example. This is a challenging topic and is regularly examined in ACCA FM / F9. I also show you how to deal with choosing the correct exchange rate, and how to calculate a forward rate agreement. This video is full of guidance and tips to help you understand easy exam technique for a money market hedge and pass the ACCA FM / F9 exam.
Download question Newden here: bit.ly/3BALrup
Good luck on your upcoming ACCA FM exam!
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Table of Contents:
00:00 - Introduction
02:31 - Forward Contract Explained
02:59 - Money Market Hedge for a Receivable Explained
04:03 - Money Market Hedge for a Payable
06:21 - Choosing the correct FX Rate
07:47 - Constructing the Money Market Hedge
10:35 - Calculating a Forward Rate Contract
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Steve Willis ACCA www.stevewillistraining.com
How to pass ACCA CBE Exams
Money market hedge explained
For more on this on ACCA PM CVP, check out Open Tuition • Money market hedging -... Find many other great videos on James Wright ACCA / jameswrightacca
More helpful videos from ACCA: • ACCA Student KZfaq C...

Пікірлер: 34

@fedemenni Жыл бұрын

got my FM exam this friday and your tutorial has actually helped me a lot, much appreciated Steve!

@SteveWillisACCA Жыл бұрын

Best of luck!

@davidduncan1567 Жыл бұрын

Steve you are the best! This was so helpful. Thank you.

@SteveWillisACCA Жыл бұрын

Glad it helped ☺️

@wasifbhaukaurally2085 Жыл бұрын

Incredible simple explanation of this complex concept, thank you.

@SteveWillisACCA Жыл бұрын

Gald it helped :)

@zakkhan6095 2 жыл бұрын

Hi Steve, great to see you're active again

@SteveWillisACCA 2 жыл бұрын

More to come!

@AndrasRemenyiACCA 2 жыл бұрын

Very simple way to explain this complicated concept Thanks for the video Steve

@SteveWillisACCA 2 жыл бұрын

You are welcome

@kimberlyjacklin3194 Жыл бұрын

Do you have any videos or tips on futures at all? This video changed my understanding of hedging and made it so clear to me so any pointers for futures would be great

@SteveWillisACCA Жыл бұрын

Hi, I don't have a video on futures, I'm sorry to say. But I will put this on my list. Good luck on FM!

@fahadmunib1817 2 жыл бұрын

Amazing thank you so so much for this.

@SteveWillisACCA 2 жыл бұрын

Glad it helped! Good luck :)

@ebrahimalam2575 2 жыл бұрын

Sir, great respect for you for clearing this tricky topic for me in such a simple way :)

@SteveWillisACCA 2 жыл бұрын

Glad it helped :) good luck next week!

@ebrahimalam2575 2 жыл бұрын

@@SteveWillisACCA Thanks a lot!

@muctarrjalloh7137 Жыл бұрын

thanks for this brief but very important help

@SteveWillisACCA Жыл бұрын

Good luck on your upcoming exam!

@magdamwaniki199 Жыл бұрын

This was soo helpful. Thank you

@SteveWillisACCA Жыл бұрын

Glad it was helpful!

@KCWONG-do4db Жыл бұрын

Sir, hopefully, you will also teach us some AFM in future, e.g. trade futures, trade options or swap. 😊 Money market hedge is quite tricky as well.

@SteveWillisACCA Жыл бұрын

Great idea!

@KCWONG-do4db Жыл бұрын

I will probably take APM in September, will you have any youtube channel for APM, especially those on variances and other APM exam key topics reviews.

@emilyfau-goodwin9273 20 күн бұрын

Thanks for the video this is great. Do you have any examples where you also include a WACC %? Some of the questions I have looked at for my exam also include this. I'm just a bit unclear where I should use it when doing a MMH?

@SteveWillisACCA 18 күн бұрын

Cost of capital doesn't come up when doing a money market hedge. You only need borrow/deposit interest rates and spot rate. Cost of capital is used when we need the required return of the capital providers of the company.

@laurenciam2i459 Жыл бұрын

Thank you sir

@SteveWillisACCA Жыл бұрын

You're welcome:)

@lewis1689 3 ай бұрын

I Steve, thank for your videos - they were the reason I passed PM and I have FM this coming Friday. Worth just double checking with you, the deposit rate calculattion - when I do (1.046*3/12) i get 0.2615. To get 1.0115 it would need to be 1+(0.046*3/12). Is this correct?

@SteveWillisACCA 3 ай бұрын

This is from a money market hedge, yes? 1) get the quaterly interest rate, so if 4% per year, 1% per quarter. Then add it to 1...1.01