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Importer has 90-day USD 1 million payable. Spot 83.00, 90-day forward 83.60. Forward hedge locks total INR outflow at:
ARs 8.36 crore
BRs 8.30 crore
CRs 8.36 crore minus 90-day INR interest
DRs 8.30 crore plus a fixed premium
Answer & Solution
Correct answer: A. Rs 8.36 crore
1. Identify what the question asks: this concept maps to importhedge (§12).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (A).
_Source: ICAI BoS CA Final Paper 2, Ch 10 "Foreign Exchange Exposure and Risk Management"_
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