hey guys im having a problem with a seemingly simple concept. simply put, what is the formula for the return on the HEDGE. i,e, in question 11 on the 2008 exam … i can calculate the unhedged return correctly. But how do i know which rates to use to work on the gain on the actual Hedge itself? thanks in advance

Unhedged: Change in the two spot rates, given start and end investment values Hedged: Change in two forward rates, given start value only

allépourpêcher Wrote: ------------------------------------------------------- > Unhedged: Change in the two spot rates, given > start and end investment values > Hedged: Change in two forward rates, given start > value only thanks but what do u mean by “given start and end investment values” and “given start values only”

I guess he meant begining market value and ending values