An investment manager hedges a portfolio of Bunds (German government bonds) with a 6-month forward contract. The current spot rate is €0.75/$, and the 180- day forward rate is €0.72/$. At the end of the 6-month period, the Bunds have risen in value by 3.75% (in euro terms), and the spot rate is now €0.66/$.a. If the Bunds earn interest at the annual rate of 5%, paid semiannually, what is the investment man- ager’s total dollar return on the hedged Bunds?b. What would the return on the Bunds have been without hedging?c. What was the true cost of the forward contract?

answerreactive approach;

anyone below or above ambitious can tell you. so crowns mean brainliest. getting brainliest means your answer needs a good explanation and the person asking the question can understand your answer easily. so say there's a multiple choice question. you don't just want to say your answer is a, hope it . provide evidence and reasoning so that they know that that is the correct answer. a good explanation should have evidence, good reasoning, and your opinion on why you picked that. you don't want to look up their question on the internet and see if you can answer it. pick questions that you 100% know the answer to, so than that way you can provide a better explanation.

best of luck,

the divergent