Question: (8 points) Lear Jet has a new contract to build airplanes in Wichita and deliver them to a buyer in India in three years. Lear

(8 points) Lear Jet has a new contract to build airplanes in Wichita and deliver them to a buyer in India in three years. Lear Jet will be paid 500 million rupees on delivery in 3 years. The spot rate today for Indian rupees is $0.015. Interest rates for 3-year debt are 4% in the United States and 9% in India. Assume that interest rate parity exists (so that we can determine the forward rate premium based on existing rates). How much will Lear Jet receive in 3 years if its hedges its exposure with a forward contract that it will arrange today?

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