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Now, assume that you are the portfolio manager of a U . S . mutual fund that invests exclusively in Swiss government bonds. For simplicity,
Now, assume that you are the portfolio manager of a US mutual fund that invests exclusively in Swiss government bonds. For simplicity, assume again that it is September The bonds in your portfolio are zero coupon bonds, have a face value of SFR and will mature on October You are convinced that the US$ will appreciate until then.
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