AFM Full Hedging Question Walkthrough - Timed! Lurgshall (ACCA Practice Exam 1 Q3) - Options & Swaps

Watch your AFM Expert Tutor Andrew Mower work through a full hedging question, from start to finish - against the clock!

This debrief covers Lurgshall, question 3 from ACCA's AFM Practice Exam 1 (available on the ACCA practice platform).

It covers:

Interest rate options (call or put, exercise or abandon etc)
Interest rate swaps (including bank fees)
FRAs
Futures
Treasury function
Professional skills marks

See exactly what you need to do in the exam to grab the marks!

Note - this was done to time, in one take, so is not meant to be a perfect answer. There will be spelling mistakes and wording that could have been better. But that's the point - it's designed to show you what is achievable in the exam!