Check analytically that a money-market hedge replicates an outright forward transaction. Analyze, for instance, a forward sale

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Check analytically that a money-market hedge replicates an outright forward transaction. Analyze, for instance, a forward sale of dkk 1 against nzd.

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International Finance Putting Theory Into Practice

ISBN: 978-0691136677

1st edition

Authors: Piet Sercu

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Question Posted: Aug 07, 2017 09:43 AM

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Check analytically that a money-market hedge replicates an outright forward transaction. Analyze, for instance, a forward sale

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Six months borrow nzd 1 1025 convert spot and invest at an effective return of 50625 p...View the full answer

International Finance Putting Theory Into Practice

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