Where we can find example for fair value hedging liability instrument - loan with currency swap if exist of course? Thanks for plenty of useful videos. Excellent explanation with lot of effort invested by author.
it's better if you use a forward contract for the example instead of an option contract because if you use an option, if the bonds price goes up, you would not excercise the option, as you have the right but not the obligation in an option contract
Sir, the example given is put option, anyone who has purchased the option has the right to exercise it or not, what if the person who has bought the put option has not exercised the right as the market price has fallen, please explain.
Thank you Sir, I have a comment : you mentionned 2 types of hedging ; Cashflow and Fair Value. I heard about a third one called Spread Lock Hedge is it the same as Fair Value Hedge ? Thank you
The same doubt for me now lol. Why not credit the aoci gain-equity after the value of put option increased ? Rather why he recorded it as aoci gain-Income ? Please Let me know the answer if you came to an conclusion with your doubt.
Thanks a lot for the video and it was helpful. I have a question regarding finding the fair value of a currency (EUR/USD) derivative. I have the nominal amount (60,000), market rate(1.04) and hedge rate (1.14). I will be glad if you could give me a hint on this. Thanks
Where we can find example for fair value hedging liability instrument - loan with currency swap if exist of course? Thanks for plenty of useful videos. Excellent explanation with lot of effort invested by author.
Thanks sir. This is one of the very few education videos that does not make me sleepy😅
Hope you can keep this energy. More power to you.
Thank you and please visit the website for more farhatlectures.com/
You are a great instructor 👌
it's better if you use a forward contract for the example instead of an option contract because if you use an option, if the bonds price goes up, you would not excercise the option, as you have the right but not the obligation in an option contract
Yea exactly, so why is forward better?
Thank you Sir, so simple and clear!
You are welcome! Please connect with me: linktr.ee/farhatlectures
Very nicely explained
Sir, the example given is put option, anyone who has purchased the option has the right to exercise it or not, what if the person who has bought the put option has not exercised the right as the market price has fallen, please explain.
Thank you Sir, I have a comment : you mentionned 2 types of hedging ; Cashflow and Fair Value.
I heard about a third one called Spread Lock Hedge is it the same as Fair Value Hedge ? Thank you
I really like your videos very through and easy to understand. May I please request do some videos on IFRS 17?
Thank You! Your video really helps me on my advanced accounting final exam :)
Great to hear! Thank you and please visit the website for more farhatlectures.com/
Make video on MCQ
aoci cannot be closed to income statement，so why you debit aoci credit gain
The same doubt for me now lol. Why not credit the aoci gain-equity after the value of put option increased ? Rather why he recorded it as aoci gain-Income ?
Please Let me know the answer if you came to an conclusion with your doubt.
Thanks a lot for the video and it was helpful. I have a question regarding finding the fair value of a currency (EUR/USD) derivative. I have the nominal amount (60,000), market rate(1.04) and hedge rate (1.14). I will be glad if you could give me a hint on this.
Thanks
Thank you Farhat - would you be able to do a video on quick ways to calculate different types of inventory using Excel?