Question 2: 20 marks Airbus sold an aircraft, A800, to Delta Airlines, a US, based airline, and billed $40 lion payable in six months. Airbus is concerned with the euro proceeds from international sales and would like to control exchange risk. The current spot exchange rate is $0.65 and six-month forward exchange rate is $0.70 now. Airbus can buy a six-month put option on US dollars with a strike price of $0.67/ for a premium of 0.02 per US dollar. Currently, interest rate is 6.0% in the euro zone and 4.0% in the U.S. WOLL DUAL (a) Compute the guaranteed euro proceeds from the American sale if Airbus decides to hedge using a forward contract. (4 marks) (b) If Airbus decides to hedge using money market instruments, what action does Airbus need to take? What would be the guaranteed euro proceeds from the American sale in this case? (8 marks) (e) If Airbus decides to hedge using put options on U.S. dollars, what would be the expected' euro proceeds from the American sale? (6 marks) (d) Which of the above hedging strategies is the best for the Airbus and why? (2 marks)