RE:RE:RE:Hedging - the factsSo, for clarity as per your example.
"In quarter 2 about 37M pounds settled at about $1.32 average. This resulted in a loss to TV of 37M X .08 or about $3M."
Does this mean TV records income at $1.32 per pound and the loss of .08 is only an accounting correction to show they really only got paid $1.24 per pound. In other words, had they recorded the original sale at $1.24 initially there would have been NO loss reported.
Either way, their income is based on the hedge price of $1.24.