Boeing just signed a contract to sell a Boeing 7 3 7 aircraft to Air France. Air
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Question:
Boeing just signed a contract to sell a Boeing aircraft to Air France. Air France will be billed million which is payable in one year. The current spot exchange rate is $ and the oneyear forward rate is $ The annual interest rate is in the US and in France. Boeing is concerned with the volatile exchange rate between the dollar and the euro and would like to hedge exchange exposure. What will be the net cash flow associated with a forward hedge?
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