System and Method for Contingent Equity Return Forward to Hedge Foreign Exchange Risk in Investments Having Varying Exit Parameters

摘要

According to one embodiment, the invention comprises a system and method for hedging an investment. In various embodiments, a risk parameter associated with the investment is identified. According to some aspects of invention, the risk parameter may correspond to Foreign Exchange risk. A notional value of the underlying investment is determined or otherwise calculated. Then one or more maturity events are determined or otherwise constructed. The notional value and the maturity events can be used to create or otherwise issue an investment hedge for the risk parameter. Upon the occurrence of one of the pre-determined maturity events, the investment hedge's notional value is adjusted. A premium may also calculated for the investment hedge in various embodiments.