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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › currency options
By using currency options if amount is underhedged we can use, say, forward contract to hedge the amount not covered by options, what if amount is overhedged, how will we treat the over hedged amount?
You can still suggest using forward rates, but in that case a forward rate to see the over hedged amount (instead of one to buy the under hedged amount).
Thanks alot.
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