23-103 What is the net gain or loss to the investment company resulting from the change in rates given that the hedge was placed?

Question

Quizplus · Accepted Answer

To calculate the net gain or loss, we need to compare the increase in the value of the investment ($50,000 x 4.262% = $2,131) with the cost of the hedge ($0). Since the investment gained more than the cost of the hedge, the investment company will have a net gain of $2,131.

23-103 What Is the Net Gain or Loss to the Investment