Boeing Corporation just signed a contract to sell a Boeing 737 to Air France. Air France will be billed 10 million payable in one year. The current spot exchange rate is $1.02/ and the one-year forward exchange rate is $0.98/. The annual interest rate is 6.0% in the US and 4.0% in France. Boeing may buy put options on euros with the strike price of $1.00/ for a premium of 1.50 cents per euro.

(1) Assuming that the forward exchange rate is the best predictor of the future spot exchange rate, compute the net expected future dollar receipt from this French sale when option hedge is used.

(2) If Boeing uses the money market hedge, what is the future dollar receipt from this French sale?