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?