Les Fleurs de France, a French distributor of flowers, has invested in a project that will provide an additional 20 million of revenue from its British distributors in 9 months. This project has a euro cost of 30 million that will also need to be paid in 9 months. The cost of the project is certain, but future exchange rates are not. Suppose interest rates are 2% in the US dollar market, 2.5% in the pound market and 1.75% in the euro market. You also observe the following currency quotations: British pounds ($/) Euros ($/) Spot $1.2903-08 $1.1452 - 56 3-month forward $1.3056 - 63 $1.1485 - 91 6-month forward $1.3080 - 90 $1.1455 - 65 9-month forward $1.3103 - 17 $1.1405 - 18 1-year forward $1.3225 - 40 $1.1320-39 Using a table that lists the transactions and timing of cash flows in a money market hedge, show that Les Fleurs de France is guaranteed a euro-denominated revenue of 21,984,444 A forward market hedge will guarantee Les Fleurs de France a euro-denominated revenue of 22,951,480 British pounds ($/) Euros ($/) Spot $1.2903 - 08 $1.1452 - 56 3-month forward $1.3056-63 $1.1485 - 91 6-month forward $1.3080 - 90 $1.1455 - 65 9-month forward $1.3103-17 $1.1405 - 18 1-year forward $1.3225 - 40 $1.1320-39 Using a table that lists the transactions and timing of cash flows in a money market hedge, show that Les Fleurs de France is guaranteed a euro-denominated revenue of 21,984,444 A forward market hedge will guarantee Les Fleurs de France a euro-denominated revenue of 22,951,480 Forward markets Given market prices, Les Fleurs de France should hedge using