How to calculate properly FX returns ( EUR/USD)

CFA Level III Derivatives
#1

I am a US based investor who is exposed to Europe and what to decide if am going to hedge this exposure or not:

facts:

-current rate:1.1930

-Expected rate in 1Y 1.2045

-Current forward levels: Bid 1.2065 offer 1.2090

what is the incremental return of hedging 20 bps ( 1.2065-1.2045)? or it is 20 bps/1.19060?

#2

your return would be 1.2065-1.2045= 0.002 higher if you hedge. this should be expressed as a percentage of starting value i.e. 0.002/1.1930, or 0.001676, or roughly 16.7 bps. Not sure where u got 1.19060

Magician can you verify, lol

#3

I meant 1.1930 not 1.1906

Thanks