Airbus delivered two A330-200 aircrafts to Delta Airlines, a U.S. company, and billed Delta a total of U$480 million payable in six months. Airbus is concerned with the US dollar proceeds from the international sales and would like to control the exchange rate risk. The current spot exchange rate is $1.1915/ and six-month forward exchange rate is $1.1963/ at the moment. Airbus can buy a six-month put option on U.S. dollars with a strike price of 0.8400 per U.S. dollar for a premium of 0.0120 per U.S. dollar. Currently, the annualized interest rate in Euros is 2.97% and for the US Dollar, it is 2.54% (You may divide these rates by 2 to get a six-month interest rate). Note: Airbus is a European company and as such would like all sales proceeds computed in Euro. Its cost of capital is in Euro. US dollar is a commodity to Airbus, and they would like everything priced in Euro. o Describe the transaction o Discuss the major concerns or issues Airbus faces with this particular transaction