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Suppose you plan to invest in Nestle for only one year. You are considering hedging your currency risk. q , Hedge with an option because
Suppose you plan to invest in Nestle for only one year. You are considering hedging your currency risk. Hedge with an option because the stock price in year is uncertain. Compute the F MM and options hedge using your best guess for the stock price in year. Choose the HIGHEST revenue in USD. sign a year swap to receive USD and pay CHF as an American investor you face no currency risk. you don't need to hedge this investment be ause you have also invested in a couple of ski hotels in Switzerland.
Suppose you plan to invest in Nestle for only one year. You are considering hedging your currency risk.
Hedge with an option because the stock price in year is uncertain.
Compute the F MM and options hedge using your best guess for the stock price in year. Choose the HIGHEST revenue in USD.
sign a year swap to receive USD and pay CHF
as an American investor you face no currency risk.
you don't need to hedge this investment be ause you have also invested in a couple of ski hotels in Switzerland.
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