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Question: discuss what is the hedging strategy that you want to establish in your company by using regression calculation Maturity mismatch but no currency mismatch
Question: discuss what is the hedging strategy that you want to establish in your company by using regression calculation
Maturity mismatch but no currency mismatch
Assume that there are only Euro future contracts with a maturity of 1 year, so the forward contract will still have 6 months to go when the EUR 360,000 are received. Determine the optimal hedge ratio, and how you would implement your strategy to hedge the exposure of EUR 360,000.
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