jdjd

Jetta production cost in 2002 and 2003 was 8,500 Euro per Jetta. Jettas were sold in US at $12,000 in 2002 and 2003 . Forward hedge exchange rate was 1$/ Euro in 2003. The market exchange rate was 1.14 \$/Euro (i.e. rate without hedge) in 2003 . If 1,500 Jetta were sold in US, in 2003 , by 40% forward hedge and 60% not hedged. What would be profits or loss from sales of 1,500 Jetta in US? Profit of 3.92 million Euro Profit of 3.264 million Euro Profit of 2.364 million Euro Profit of 3.542 million Euro