Forex

The current spot rate is 1.997 - 2.003 So the forward rate is 1.995 - 2.001 That bit you have got correct. However since the receipt is in $'s and needs converting to Euros, we convert at 2.001 (If you watch the free lectures I do explain how to decide which of the two rates to use). Also, (although maybe you mean correctly you wrote it wrong), to convert from $'s to Euros we divide 2,000 by 2.001 (you wrote the other way round). So it converts to EUR 999.50 (If you took 1.995 then you would end up with more euros which cannot be the case - it is always the rate that is worse for us (it is the bank who gains, not us :-) )

You mean is converting foreign exchange the reason that Islamic finance is more popular? If so, then there is no direct connection. With the economic growth of many Islamic countries couple with globalisation, companies in those countries need to be able to raise finance in ways that comply with the religious laws.

No - you need to read the chapter in the lecture notes :-)