Exchange rate risk can be hedged. In simple terms, the hedging cost is the interest rate differential between the two currencies plus a small risk premium.
I haven't done any currency hedging for quite a few years so I'm a bit out of touch. But I'd be surprised if an AUD/USD hedge currently costs more than 1% p.a. That's nothing compared to the 66.8% p.a. profit scenario I posted about.
- Forums
- ASX - By Stock
- RAP
- Ann: Results of Scheme Meeting
Ann: Results of Scheme Meeting, page-225
-
-
- There are more pages in this discussion • 26 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add RAP (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
LU7
LITHIUM UNIVERSE LIMITED
Alex Hanly, CEO
Alex Hanly
CEO
SPONSORED BY The Market Online