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If a U.S. investor owns a foreign currency denominated bond with 5 years maturity and semiannual interest payments, he can hedge with buying the foreign
If a U.S. investor owns a foreign currency denominated bond with 5 years maturity and semiannual interest payments, he can hedge with
buying the foreign currency today and investing it in the foreign county | ||
a long position in an exchange-traded futures option | ||
a long position in a currency forward contract | ||
a swap contract where pay of the cash flows of the bond in exchange for dollars |
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