Embraer of Brazil Embraer of Brazil is one of the two leading global manufacturers of regional jets (Bombardier of Canada is the other). Regional jets are smaller than the traditional civilian airliners produced by Airbus and Boeing, seating between 50 and 100 people on average. Embraer has concluded an agreement with a regional U.S. airline to produce and deliver four aircraft one year from now for $76 million Although Embraer will be paid in US dollars, it also possesses a currency exposure of inputs it must pay foreign suppliers S15 million for inputs one year from now (but they will be delivering the subcomponents throughout the year). The current spot rate on the Brazilian real (RS) is R51.8224/5, but it has been steadily appreciating against the US dollar over the past three years Forward contracts are difficult to acquire and are considered expensive Citibank Brasil has not explicitly provided Embraer a forward rate quote, but has stated that it will probably be pricing a forward off the current 4.50% US dollar eurocurrency rate and the 10.50% Brazilian government bond rate. Advise Embraer on its currency exposure. Burton Manufacturing. Jason Stedman is the director of finance for Burton Manufacturing, a US-based manufacturer of handheld computer systems for inventory management Burton's system combines a low-cost active tag that is attached to inventory items (the tag emits an extremely low-grade radio frequency) with custom designed hardware and software that tracks the low-grade emissions for inventory control Burton has completed the sale of an inventory management system to a British firm, Pegg Metropolitan (UK), for a total payment of 1,000,000. The exchange rates shown in the popup window, were available to Burton on the dates shown, corresponding to the events of this specific export sale. Assume each month is 30 days a. What will be the amount of foreign exchange gain (loss) upon settlement? b. If Jason hedges the exposure with a forward contract, what will be the net foreign exchange gain (loss) on settlement? nast number own