Just problem 14 please show formulas and steps for calculation in Excel

14. Boeing just signed a contract to sell a Boeing 737 aircraft to Air France. Air France will be billed 20 million payable in one Page 231 year. The current spot exchange rate is $1.05/ and the one-year forward rate is $1.10/. The annual interest rate is 6 percent in the United States and 5 percent in France. Boeing is concerned with the volatile exchange rate between the dollar and the euro and would like to hedge exchange exposure. o. It is considering two hedging alternatives: sell the euro proceeds from the sale forward or borrow euros from Crdit Lyonnaise against the euro receivable. Which alternative would you recommend? Why? p. Other things being equal, at what forward exchange rate would Boeing be indifferent between the two hedging methods? 17. Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying either $10,000 or SF15,000 in three months. r. In the example, Baltimore Machinery effectively gave the Swiss client a free option to buy up to $10,000 using Swiss francs. What is the "implied" exercise exchange rate? s. If the spot exchange rate turns out to be $0.62/SF, which currency do you think the Swiss client will choose to use for payment? What is the value of this free option for the Swiss client? t. What is the best way for Baltimore Machinery to deal with exchange exposure? Make sure to the explanation, formulas and steps for calculation should be included in your work to receive full credit. Submission Requirement: You can submit your assignment in docx or Excel format