-denominated assets to more than 3.8 USD trillion, which should give raise to substantial currency hedging if US investor have reciprical … hedging. We find that hedging behavior by all fund types is often partial, unitary (i.e., with a single currency focus), and … European investment funds, even though optimal hedging strategies could without incurring substantial trading costs. …

investors and the hedging of exposures remains dificult. This paper proposes to overcome these problems by introducing a call … hedging risk. Even if this is not entirely possible, the replication approach serves as pricing benchmark for investors who …