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Currency Management - Reading 28 p.252-253
In the 'Executing a hedge' example:
To close out the current hedge:
Hedge 1: uses the mid-market spot rate for JPY/HKD of 10.81.
Hedge 2: uses the bid spot rate for HKD/EUR of 10.02.
Why is one mid market-spot and one bid spot used to close out a current swap? It doesn't seem consistent to me. Thanks!