need sumone to please explain the HEDGE/ DON'T HEDGE DECISION in plain terms:
how best to decide if the foreign currency should be hedged or not.
thanx a million!作者: Colum 时间: 2011-7-13 13:11
For currency appreciation, if your expectations of foreign currency appreciation are greater than as predicted by interest rate differential- do not hedge and vice versa.
For currency depreciation, if your expectation for foreign currency depreciation are less than as predicted by interest rate differential, do not hedge and vice versa.
