Question
Canada Airlines just bought 20 Boeing 787 to be delivered in 1 year. The contract currency is in USD, worth $8 billion USD. The current
Canada Airlines just bought 20 Boeing 787 to be delivered in 1 year. The contract currency is in USD, worth $8 billion USD. The current exchange rate is $0.7355. The one-year-forward rate is $0.7485. Singapore Airlines decided to enter into a forward hedge. If the spot rate in one year turns out to be $0.7384. How much did Canada Airlines make/lose in the hedge?
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
