Theoretically, shouldn't forward contract hedges and money market hedges have the same identical outcome? Don't they both

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Theoretically, shouldn't forward contract hedges and money market hedges have the same identical outcome? Don't they both use the same three specific inputs-the initial spot rate, the domestic cost of funds, and the foreign cost of funds?

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Multinational Business Finance

ISBN: 978-0133879872

14th edition

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

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Question Posted: Jan 19, 2017 09:55 AM

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Theoretically, shouldn't forward contract hedges and money market hedges have the same identical outcome? Don't they both

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On a theoretical basis both structures do indeed include the same three ...View the full answer

Multinational Business Finance

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