overhedged

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March 6, 2022 at 5:39 am #649952
meeruraj
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Amount overhedged is $9100
Forward rate is $/MR 0.2370-0.2374

to find the overhedged amount in MR y do we use 0.2370 rate
March 6, 2022 at 7:58 am #649957
John Moffat
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If they are receiving $’s then you would use 0.2370 because the futures contracts would be converting too many $’s and they would be used to buy MR.
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