CIMA Exam CIMAPRA19-F03-1 Topic 5 Question 103 Discussion

Actual exam question for CIMA's CIMAPRA19-F03-1 exam

Question #: 103
Topic #: 5

Which THREE of the following statements are true of a money market hedge?

AThey offer roughly the same outcome as a forward contract.

BThey leave the company exposed to currency risks.

CThey may be a little more flexible in comparison to a forward contract.

DThey are more complex than forward contracts.

EThey are easy to set up.

Show Suggested Answer

Suggested Answer: A, B, D

by Reed at Dec 10, 2024, 01:11 AM

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23 hours ago

A, C, and D seem to be the correct answers here. Money market hedges offer more flexibility than forward contracts, but they are also more complex.

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7 days ago

I think statement A is true because money market hedges are similar to forward contracts.

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