Class notes

ACCA P4 AFM Advance Financial Management

Rating

Sold

Pages

Uploaded on

18-01-2022

Written in

2021/2022

Role and Responsibility of Financial Managers Investment Appraisal Cost of Capital Adjusted Present Value (APV) Financing Decision Dividend Decision International Investment Appraisal International Financing Decision International Dividend Decision Option Pricing Corporate Failure Corporate Reconstruction Corporate Reorganization Risk Management Forwards Contracts Money Market Hedge Future Contract Option Contract Currency Swap Mergers and Acquisitions Business Valuations Role and Responsibility of Financial Managers Investment Appraisal Cost of Capital Adjusted Present Value (APV) Financing Decision Dividend Decision International Investment Appraisal International Financing Decision International Dividend Decision Option Pricing Corporate Failure Corporate Reconstruction Corporate Reorganization Risk Management Forwards Contracts Money Market Hedge Future Contract Option Contract Currency Swap Mergers and Acquisitions Business Valuations

Show more Read less

Institution

Course

Content preview

ACCAspace

Provided by
ACCA Research Institute

ACCA P4
Advanced Financial Management (AFM)
高级财务管理
ACCA Lecturer: Lily Wang

ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com

, P4 Chapter 19 Content

1 Interest rate futures (IRFs)

2 Options on Interest rate futures

3 Caps, floors and collars

ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 2

, 1.Interest rate futures (IRFs)

 Introduction
• An interest rate futures contract fixes the interest rate on a future
loan or deposit.
• More details on interest rate futures

ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 3

, 1.Interest rate futures (IRFs)

 Futures hedging calculations
• Step 1: Set up the hedge by addressing 3 key questions:
• Do we initially buy or sell futures?
• How many contracts?
• Which expiry date should be chosen?
• Step 2: Contact the exchange. Pay the inital margin. Then wait
until the transaction/Settlement date
• Step 3: Calculate profit or loss in th futures market by closing out
the futures contracts, and calculate the value of the transaction
using the market rate of interest on the transaction date

ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 4

Report Copyright Violation

Written for

Course: ACCA

All documents for this subject (206)

Document information

Uploaded on: January 18, 2022
Number of pages: 33
Written in: 2021/2022
Type: Class notes
Professor(s): Unknown
Contains: All classes

Subjects

acca icaew cima aat financial management advance financial manangement business finance decisions acca p4 afm advance financial management

$3.49

Get access to the full document:

Written by students who passed

Immediately available after payment

Read online or as PDF

Get to know the seller

kgotydoc

Get to know the seller

kgotydoc BPP and Kaplan

View profile

Sold

Member since

4 year

Number of followers

Documents

Last sold

0.0

0 reviews

Why students choose Stuvia

Created by fellow students, verified by reviews

Quality you can trust: written by students who passed their tests and reviewed by others who've used these notes.

Didn't get what you expected? Choose another document

No worries! You can instantly pick a different document that better fits what you're looking for.

Pay as you like, start learning right away

No subscription, no commitments. Pay the way you're used to via credit card and download your PDF document instantly.

“Bought, downloaded, and aced it. It really can be that simple.”

Alisha Student

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller kgotydoc. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $3.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews) 48077 documents were sold in the last 30 days Founded in 2010, the go-to place to buy study notes for 16 years now

ACCA P4 AFM Advance Financial Management

Content preview

Written for

Document information

Subjects

Get to know the seller

Recently viewed by you

Why students choose Stuvia

Created by fellow students, verified by reviews

Didn't get what you expected? Choose another document

Pay as you like, start learning right away

Working on your references?

Frequently asked questions

What do I get when I buy this document?

Satisfaction guarantee: how does it work?

Who am I buying these notes from?

Will I be stuck with a subscription?

Can Stuvia be trusted?