AFM Technical Article Podcast: How to answer an interest rate risk management question скачать в хорошем качестве

AFM Technical Article Podcast: How to answer an interest rate risk management question

Interest rate risk management often causes problems in the AFM exam – students usually perform better on FX risk than on interest rate hedging. This article breaks down how to approach hedging questions using the Wardegul Co scenario (Sept/Dec 2017 sample exam). Key exam takeaways: Always start with the requirement – know what calculations & discussion are needed before diving into the numbers. Hedging instruments to assess: FRAs, futures, and options on futures. Calculations must show: Actual investment return Hedge adjustment (gain/loss) Effective annual interest rate Discussion matters – 4 marks are available for explaining risk aversion, counterparty risk, expectations of future rates, and why one instrument is better in context. Exam technique: if your FRA or futures answers don’t reconcile to the same effective rate in both scenarios, recheck your working. Strong answers combine structured calculations + scenario-based commentary – not generic lists. Studying ACCA? Learnsignal offers mock exams, expert feedback, video lessons, and structured plans to help you pass. 👉 https://www.learnsignal.com/acca/ #ACCA #AFM #RiskManagement #InterestRateRisk #accaexams #ExamTips