hedge the currency risk of a foreign assets using currency forwards.
hedged return should be local return + forward premium/discount?
or should be domestic risk free rate +local excess return?
here excess return=total return-risk free rate.
哪位大侠请给指点一下？在线等。多谢多谢了
l******y 发帖数: 313
2
also, the interest rate in interest rate parity is risk free rate or not?
thanks.
【在 l******y 的大作中提到】 : hedge the currency risk of a foreign assets using currency forwards. : hedged return should be local return + forward premium/discount? : or should be domestic risk free rate +local excess return? : here excess return=total return-risk free rate. : 哪位大侠请给指点一下？在线等。多谢多谢了
