giorgio10

First, thanks for responding:

ok. Here's where I am confused.

We have a UK investor.

We have a Canadian stock.

We have the formula: domestic currency exposure of an asset = foreign currency exposure +1

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My questions:

1) I knows this sounds really lame, but who/what is the domestic exposure?

2) Who/what is the the foreign currency exposure

3) Who/what is the "local" currency exposure?