Please tell me
in schweser book Example 6
I just have one question
for hedged return (Rdc $/UK) why did he add hedged total return of 0.85 + Rfx of 0.8 =1.65
As per principle shouldn’t it be Rfc 0.1 + 0.8 =0.9 and 0.8 being forward premium that we locked in by hedging it , please correct where i am wrong