Cross Hedge vs. Proxy Hedge

Level III candidates often confuse cross hedges and proxy hedges.ย  This isnโ€™t their fault: one of the readings makes a distinction between these, while another claims that theyโ€™re the same (though it includes a footnote that says that theyโ€™re different). Sigh. Suppose that your domestic currency is the Canadian dollar (CAD), and that you have […]

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