A hedger will be indifferent between hedging in the money markets and the forward markets, assuming that
Fantastic news! We've Found the answer you've been seeking!
Question:
A hedger will be indifferent between hedging in the money markets and the forward markets, assuming that S= 1.4000 Cad/usd and Rcad = 10% and Rusd= 5% if the forward rate, measured in CAD/USD is?
Posted Date: