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As i review previous exam papers and tests, sometimes i see tht the number of contract is calculated by rounding down to avoid overhedging, and other times it is rounded to the closest integer even if we might overhedge. Is it any general rule what we need to follow in case of foreign exchange or interest rate hedging, or both approach is acceptable in each case?
There is no rule, and in the exam it does not matter – you will not lose marks either way.
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