The situation
A fictional Gujarat importer owes $100,000. The budget is ₹86 lakh. An available forward buys dollars at ₹84. In a stress case, spot settles at ₹89. Consider hedge ratios of 40%, 60% and 80%, and ignore fees.
1. Work out the numbers
Which direction offsets the importer’s risk?
2. Make the decision
What is the smallest listed hedge that meets the stressed budget?
Complete the calculation above to unlock this decision.