A method for hedging an investor against a currency risk associated with a purchase
of a security having a value, the investor having purchased the security in a foreign
currency and the investor desiring to receive the proceeds from a sale of the security
in a home currency. The foreign currency and home currency have an exchange rate
at the time of the purchase and an exchange rate at the time of the sale. The method
includes the steps of receiving a request for hedging against the currency risk
for a time period. Next, a cost is calculated for hedging against the currency
risk based on the foreign currency, the home currency, the exchange rate at the
time of the purchase, the value and the time period. Next, the investor is provided
with the proceeds from the sale based on the exchange rate at the time of the sale
if the exchange rate at the time of the sale is greater than the exchange rate
at the time of the purchase. Finally, the investor is provided with the proceeds
from the sale based on the exchange rate at the time of the purchase if the exchange
rate at the time of the purchase is greater than or equal to the exchange rate
at the time of the sale.