In questions which involve receipts to be hedged against futures market for exchange rates why are they using 2 different methods when the question overall is almost the same ?
In some answers they are calculating the receipt as-
a. contract size * no of contracts * lock in rate
whereas in some other questions the receipt is calculated as-
b. receipt in foreign currency / lock in rate
Why is this ? I cannot wrap my head around it, can someone please please get back to me at the quickest.