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5 . Ford Motor Co . sells its 2 0 2 4 automobiles to the Euro Zone at a price of 2 0 million. These
Ford Motor Co sells its automobiles to the Euro Zone at a price of million. These US cars will be delivered and paid for in exactly one year laterRelated financial information below:aEuro loan yearly interest rate: rbUS yearly interest rate: r cCurrent spot exchange rate: $ per dyear expected spot exchange rate: $ per If Ford decides to hedge its foreign exchange risk by using a oneyear forward contract, estimate the oneyear forward exchange rate that applies. point.HINT: Use Equation presented in the previous problem.
Ford Motor Co sells its automobiles to the Euro Zone at a price of million. These US cars will be delivered and paid for in exactly one year laterRelated financial information below:aEuro loan yearly interest rate: rbUS yearly interest rate: r cCurrent spot exchange rate: $ per dyear expected spot exchange rate: $ per If Ford decides to hedge its foreign exchange risk by using a oneyear forward contract, estimate the oneyear forward exchange rate that applies. point.HINT: Use Equation presented in the previous problem.
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