Assume that Wesfarmers, an Australian conglomerate, buys seeds from an Italian company. As a result, it has a payable of EUR$275,000$ on $15$ October $2024,$ but the company worries about the depreciation of the AUD against the EUR.

$($i$)$ Should Wesfarmers hedge this currency exposure with a forward or futures contract? Explain why.

$($ii$)$ Suppose that the company decided to buy this amount of euros with a forward contract from ANZ $($an Australian big bank$)$ at a forward rate of EUR$0\mathrm{.}6150$ per AUD and the delivery date is $15$ October $2024.$

Also assume that by $1$ October, Wesfarmers is informed that the Italian company can$$t make the delivery of seeds on time, thus Wesfarmers doesn$$t have to make the payment of EUR$275,000$ until $15$ November $2024.$

Discuss how Wesfarmers can use an FX swap to rollover the current forward contract with ANZ and still maintain a hedged position until $15$ November $2024.$