Short EUR stock market futures, sell EUR, buy USD

CFA Level III Derivatives
#1

Risk Management Applications of Derivative

CFA online practice questions

Anna Lehigh Case Scenario

Short EUR stock market futures, sell EUR, buy USD. How does this strategy result in the risk free US rate?

#2

EUR stock portfolio + hedging EUR stock market via futures = EUR risk-free rate return

EUR risk-free rate return + hedging EUR/USD currency pair = USD risk-free rate return