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Heyaa John
a)-(i)
the contract is to buy yen as we are making payment to supplier of yen , so buy yen(supplier currency) and sell $(own currency), so it means sell future which i have learnt from your lectures , but here is otherway round , silly me i have wasted hours on it.I think you maybe need to watch the lectures again.
Since the futures contract size is in Yen, then since the company needs to buy Yen they will buy Yen futures.
The answer is exactly as I explain in my lectures.
Sir john
i was considering the receivable amount and payable amount and converting currency on that basis , such as us supplier owed me a money then my technique was buy $ and sell home currency there sell futures , can i use that basis sir , i have used almost in each question and i got the answer right , but this i think so the owing amount is in currency which is same as contract size thats why making my answer little bit difficult in this question.
if you can further clarify what my technique is correct.
plus i have solved all questions but didnt get wrong except this one.
here the contract size and the amount owed is in same currency thats why i got wrong answer.
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