foreign exchange management

Question 2: X Limited, a limited company operates from Mumbai, has an export exposure of 10 million yen, payable on 30th September 2020. The current spot rate is INR/USD = 41.79/41.95 and JPY/USD = 129.75/ 130.05. It is estimated that yen will depreciate to 144 and Rupee to depreciate against $ to 43. Forward rates for September are INR USD = 42.90 and JPY/USD = 137.35. You are required to: Wo 12 a. Calculate the expected loss/gain if hedging is not done. b. How the position will change if the firm takes forward cover? If the spot rate on 30th September was eventually INR USD = 42.78 and JPY USD = 137.85. Is the decision to take forward cover justified