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Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed 610 million payable in one year. The money: market interestrates and foreign exchange

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Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed 610 million payable in one year. The money: market interestrates and foreign exchange rates are given as follows: The U.S. one-year interest rate: 6.10% per annum; The euro zone one-year interest iate: 9.00% per annum; The spot exchange rate: $150/E: The one-year forward exchange rate $1.46/. Assume that Boeing sells a currency forward contract of 10 million for delivery in one year, in exchange for a predetermined amount of U.S.dollars. Suppose that on the maturity date of the forward contract, the spot rate turns out to be $1.40/(1.e. less than the forward rate of $1.46/6). Which of the following is true? Bocing would have received only $14.0 milion, rather than $14.6 million, had it not entered into the forward contract. Boeing would have recived onl $14.0 million rather than $14.6 million, had it not entered into the forward contract. Additionally,Boeing Hained $0.6 milion from forward hedoing Boeing gained $0.8 minut from forward hedeing none of the options

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