Executing a hedge


I would like to ask for your help with clarifying the example on exectuing a hedge as shown on page 345 - 346 Reading 18 on currency management (CFAI book). I’m referring to the second hedge discussed.

Why are both spot legs based on the bid rate?

Also, how would a hedge be priced if the forward leg’s nominal value would be lower vs. the spot leg?


Can you name the hedging methods that you are referring to maybe?

I am not using the CFAI material of this year. Yes I should use the 2016 one sooner or later… but… not there yet. So this reference does not help me. But I would be glad to see if I can help with more info.