Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed 20 million payable in one year. One-year interest rates are 2% in the United States and 4% in the euro zone. The spot rate is USD1.10/EUR and the forward rate is USD 1/ EUR.

		A money-market hedge, because the proceeds are higher.
		A forward hedge, because the proceeds are higher.
		A forward hedge, because the proceeds are lower.
		There is no difference between the forward hedge and the money-market hedge.