Covered Interest Arbitrage

Covered Interest Arbitrage
Hedge strategy used by portfolio manager by investing dollars in a foreign currency denominated instrument and hedging the foreign exchange risk with a sale (for dollars) of the proceeds generated by the investment forward.

Related posts:

  1. Covered Call Writing Strategy
  2. Covered or Hedge Option Strategies
  3. Hedging
  4. Forward Sale
  5. Short Interest

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