I think wrong here.
If we look scenario 1. They solve P&L of net position (70% original exposure and 30% hedged). They have 5M - 1.2M =3.8M.
The 5M is for 100% original but it’s only 70% now. So I use, 70M * 0.05 = 3.5M for 70% original exposure.
The net P&L I think should be = 3.5M -1.2M = 2.3M instead of 3.8M.
Any help thank you.