Dear Experts,
We have a requirement where the realization of profit or loss for the forward contract should be at the cancelled rate and not on the spot exchange rate.
Let me explain, for example:
I have a forward contract opened on 1st Dec 2012 for USD 10000 @ INR.55 (forward rate) with maturity date 30.06.2013
I am cancelling the contract at INR.57 before the maturity date on 31.01.2013 using Premature Settlement.
When I do TPM18 on 31.01.2013, the system calculates the gain or loss with respect to the Exchange Rate as on 31.01.2013, say INR.56. Hence, the gain will be INR.10000 (INR.56*USD.10000 - INR.55*USD.10000 = INR.10000)
But as per the requirement, the gain should be INR.20000 (INR.57(Cancellation rate)*USD.10000 - INR.55(forward rate)*USD.10000).
Can you please help on how to achieve the above scenario?
Thanks,
Vinod P