AUD100M
SPOT=0.69/AUD | FWD=0.6682/AUD
Local currency return = 8.5%
What the return on a hedged total return?
I think hedging means “you are short the AUD” so your FX retrun shld be given by - (F-S)/S where am i going wrong?
AUD100M
SPOT=0.69/AUD | FWD=0.6682/AUD
Local currency return = 8.5%
What the return on a hedged total return?
I think hedging means “you are short the AUD” so your FX retrun shld be given by - (F-S)/S where am i going wrong?