I am facing trouble understanding in the calculation of hedged return in currency risk management. Could somebody explain what is the significance of -> Vo(-Ft+Fo) ??
I can learn it by rote but that wont help me in the long term 
Ft - F0 = Change in Futures price
V0 = Initial Value of portfolio.
Though the futures contract is marked to market daily - the end result is the above.
Instead of looking at it in the manner presented - think of it in the below manner:
V0 (-Ft + F0) = -V0 * (Ft-F0)
-V0 -> you sold a forward / futures contract for V0.
Ft - F0 = Change in the futures/ Forward price (between when you took the contract F0 and now Ft).
Thanks CPK … i had totally not acccounted for it being marked to matket!!! It is these learnins that make CFA worth it