Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed 20 million payable in one
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Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed 20 million payable in one year. One-year interest rates are 2% in the United States and 4% in the euro zone. The spot rate is USD1.10/EUR and the forward rate is USD 1/ EUR.
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