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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

5.Ford Motor Co. sells its 2024 automobiles to the Euro Zone at a price of 20 million. These U.S. cars will be delivered and paid for in 2025(exactly one year later).Related financial information below:a)Euro loan yearly interest rate: r*=4%b)U.S. yearly interest rate: r =3%c)Current spot exchange rate: $1.2154 per d)1-year expected spot exchange rate: $1.1953 per 5.1If Ford decides to hedge its foreign exchange risk by using a one-year forward contract, estimate the one-year forward exchange rate that applies. 1 point.HINT: Use Equation 1 presented in the previous problem.

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