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 16 Content
1 Futures contracts
2 Currency options
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 2
, 1.Future contracts
Characteristics
• Futures contracts are standard sized, traded hedging instruments. The
aim of a currency futures contracts is to fix an exchange rate at some
future date.
• A key issue with currency futures is to establish the currency of the
contract or CC. For example if the CC is $ and your transaction involves
buying $, you should buy futures now to set up the hedge. Note that the
CC in an exam question is found by looking at the standard contract
size. For example ,if the contract size is quoted in Sterling, the CC is
sterling.
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 3
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 16 Content
1 Futures contracts
2 Currency options
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 2
, 1.Future contracts
Characteristics
• Futures contracts are standard sized, traded hedging instruments. The
aim of a currency futures contracts is to fix an exchange rate at some
future date.
• A key issue with currency futures is to establish the currency of the
contract or CC. For example if the CC is $ and your transaction involves
buying $, you should buy futures now to set up the hedge. Note that the
CC in an exam question is found by looking at the standard contract
size. For example ,if the contract size is quoted in Sterling, the CC is
sterling.
ACCAspace 中国ACCA特许公认会计师教育平台 Copyright © ACCAspace.com 3
