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FAR STUDY GROUP
CPAnet Forum : FAR STUDY GROUP

Topic: Foreign Currency (

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Payal123
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Joined: 08 Jan 2009
Location: United States
Online Status: Offline
Posts: 330

Posted: 22 Aug 2009 at 18:23 \| IP Logged

So jams what i understand by this is: since there is a gain on borrowing, it is effective & had it been a loss it would be ineffective? Is this correct?

Yeah actually Becker has not covered this topic very well. Its very difficult to understand the problems when i do it from wiley. I am not able to solve it correctly.

I just hope this topic is not tested heavily in our exam.

Thanks Jams.

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Jams
Major Contributor

Joined: 26 Apr 2007
Location: United States
Online Status: Offline
Posts: 547

Posted: 22 Aug 2009 at 19:05 \| IP Logged

you are right payal, if its a loss then the whole point of hedging is not fulfil and its ineffective.

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jams

BEC-76
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FAR-81 !!!

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