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OpenStudy (anonymous):

how can you calculate the cost of currency hedge between two countries.

OpenStudy (anonymous):

The cost of a currency hedge is typically referred to as a "cost of carry." The cost of carry will be the difference in the interest rates received/paid on the two currencies (note this may be a positive number). Depending on the time horizon of the hedge you will need to look at the market prices in this cost in the currency forward rate curve.

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