MJY 12/05

This topic has 1 reply, 2 voices, and was last updated 11 years ago by John Moffat.

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May 26, 2015 at 4:53 pm #249264
aishaasad
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MJY is supposed to pay in three months time .here the over hedged amount are converted at higher rate so they are treated as receipts how?
Thank you
May 26, 2015 at 5:28 pm #249295
John Moffat
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Because they have over hedged they are forced to convert more than they actually need for the payment.

So the extra has to be converted back at spot (at the higher rate because they are selling the other currency to convert it back).
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