be billed 20 million which is payable in one year. The current spot exchange rate is $1.05( and the one-year forward rate is S 1.10. The annual interest rate is 6.0% in the U.S. and 5.0% in France. Boeing is concerned with the volatile exchange rate between the dollar and the euro and would like to hedge exchange exposure. (a) It is considering two hedging altematives: hedging with forward contract or money market instruments. b) What is the dollar revenue if the foreign exchange risk is hedged with forward contract? (c) Howto hedge the foreign exchange risk with money market instruments? (d) What is the dollar revenue if the foreign exchange risk is hedged with money market instruments? (e) Which hedging strategy is preferred? Other things being equal, at what forward exchange rate would Boeing be indifferent between the two hedging methods