skycfa

I'm having trouble without #s being presented.

Assuming 1.5 EUR/GBP

Euro rate = 5%
UK Rate = 1%

1.5594 EUR/GBP is what IRP says.

However, he believes EUR will depreciate less, so let's say 1.52 EUR/GBP is his projection.

When he converts the GBP to EUR, he can either get 1.5594 EUR per GBP or 1.52 EUR per GBP.

I'm saying he should hedge, is my logic somehow off?

NO EXCUSES