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sir, in the answer to no C) Receipt using swap arrangement = €715m + €329m = €1,044m
in this buryecs we only hedged using swap the $5000 then why are we including €329m as our swap arrangement. it is true that govt gave us $7500 but we swapped only $5000 so shouldn’t the answer be just €715m.
They do receive 7,500.
Of this, 5,000 was part of the swap and is therefore converted at todays spot rate. The remaining 2,500 is converted at the rate in 3 months time.
sir i got the point that 2500 converted at the rate in 3 months time but my question is why are we saying that we have swapped this 2500, rather isn’t this amount remaining unhedged
The 2,500 isn’t swapped, but it is part of the whole arrangement that they are considering.
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