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please answer both portions 10. Boeing exported a Rolls-Royce jet engine and billed the British buyer for 5 mil payable in one year (10 points)
please answer both portions 10. Boeing exported a Rolls-Royce jet engine and billed the British buyer for 5 mil payable in one year (10 points) The US interest rate 5.00% per annum The UK interest rate 4.00% per annum The Spot exchange rate $ 1.80/ today a. If Boeing needs to use options to hedge the exchange risk, which type of option should Boeing use? b. Given that the option has a strike price of $1.8/ and a premium of $0.04/. What would be Boeing's USD proceeds one year later from this transaction if the spot rate one year later is $ $1.9/? What would be Boeing's USD proceeds one year later from this transaction if the spot rate one year later is $ $1.4/
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