Currency management

FrankCFA

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Not fully understand below question. Should it be selling KRW agn EUR fx forward to hedge back to EUR? Why it’s a long forward in the KRW? Thanks.
Kaplan, currency management, Q8
Jane Simms manages a German portfolio and has a 1,000,000 long hedge position in South Korean won (KRW) that is about to come due. In other words, she has a long forward in the KRW. The current spot exchange rate is EUR/KRW 0.00067/0.00068. The forward points for a three-month forward contract are –1.2/–1.1. She expects the KRW to depreciate significantly and has the authority to increase or decrease the hedge size by 10%. Explain whether she will increase or decrease the size of the hedge and the forward exchange rate at which she will contract.
 
I share your pain in these FX-related questions… - i tend to slip on every other question like that.
Agree with you in that based on the question setup: german portfolio (unhedged position: long KRW, short EUR) would need to SHORT the forward, given the following EUR/KRW spot FX-quote…
One possible explanation to why the question reads “LONG forward” could be the fact, that standard market convention with EUR would put it in the base of KRW/EUR quotatition pair (R19, p8)…. or is it a typo in the question?
 
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