Forward Versus Money Market Hedging. Theoretically, shouldnt forward contract hedges and money market hedges have the same

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Forward Versus Money Market Hedging. Theoretically, shouldn’t forward contract hedges and money market hedges have the same identical outcome?

Don’t they both use the same three specific inputs:

the initial spot rate, the domestic cost of funds, and the foreign cost of funds?

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Multinational Business Finance

ISBN: 9781292270081

15th Global Edition

Authors: David Eiteman, Arthur Stonehill, Michael Moffett

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