Currency manager

Hi all!!

If I were in this scenario, which risk free rate I should obtain… I am european investor that invest in asset in US, I hedge the FX and the asset… so my return would be the US risk free rate?


Your risk-free rate (probably EUR, but possibly CHF; Switzerland’s still in Europe, I believe).

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Thanks!! Could you explain the Logic behind that? I thought the return would be US risk free because the asset was there


(Recall how the forward exchange rate is calculated from Level II.)