Would someone be able to explain in simple terms (for a dumb person like me) what is going on with a prepaid variable forward? Page 350 in book 2. How are these used to hedge concentrated positions?
Thanks in advance my people
https://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91370583
https://www.analystforum.com/forums/cfa-forums/cfa-level-iii-forum/91341008
BTW, I can gaurantee this won’t be on the test.