Kindly write a blog return on hedge/unhedged foreign investment. Calculating return in the following senarios- 1. Equity and forex remain unhedged 2. Only forex is hedged thanks
I’ll get to it as soon as I can.
Thanks for the suggestion.
Too many demands from here Thanks, Magician!
Unhedged return:
Foreign return (in local currency) + currency return over the period
Hedged return:
Foreign return (in local currency) + forward premium/discount or
Domestic risk free rate + foreign country risk premium