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Business, 02.11.2019 04:31 rtorres3

Boeing just signed a contract to sell a boeing 737 aircraft to air france. air france will be billed €20 million payable in one year. the current spot exchange rate is $1.05/€ and the one-year forward rate is $1.10/€. interest rate is 6.0% per annum in the u. s. and 5.0% per annum in france. boeing is concerned with the volatile exchange rate between the dollar and the euro and would like to hedge its foreign currency exposure.

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