I am analyzing a company's annual report, and wish to find the percentage of FX exposure they have already hedged. I have the following information:

  • The net FX exposure for 4 different years
  • The gains/losses reported in these years
  • The corresponding exchange rate at these times
  • I also have information that they are using a derivative instrument to hedge against FX risk, whose notional and the range of interest rates within which this instrument will work as a hedge

My main doubt really is: can I simply use the notional of the hedging instrument and say that is the amount hedged? Will I have to divide all FX liabilities into interest wise structure to see which ones are really hedged?



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