You have just bought and sold EUR 10 million against USD, spot against 3 months (91 days)
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You have just bought and sold EUR 10 million against USD, spot against 3 months (91 days) at 0.9120 and 0.9163. You hedge the position approximately by lending EUR 10 million at 3.0% and borrowing USD 9.12 million at 5%. If you are based in EUR, what additional small transaction could you undertake to completely hedge any remaining risk?
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Related Book For 
Foreign Exchange And Money Markets Theory Practice And Risk Management
ISBN: 9780750650250
1st Edition
Authors: Bob Steiner
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