Question: E2. Lockheed Martin just signed a contract to sell misile systems to Kuwait. Kuwait's government will be billed Dinars 500 million which is payable in

E2. Lockheed Martin just signed a contract to sell misile systems to Kuwait. Kuwait's government will be billed Dinars 500 million which is payable in two years. The current spot exchange rate two-year forward rate is D3.812. The annual interest rate is 2.0% in the US, and 6.0% in Kuwait. Lockheed Martin is concerned with the volatile exchange rate between the dollar and the Dinar and would like to hedge exchange exposure. is D3.312/5 and the Lockheed Martin is considering two hedging alternatives. Alternative A is to sell forward the Dinar proceeds from the sale. State how much in dollars Lockheed Martin will receive in two years for this hedging alternative. Put your numerical answer in the box below in millions of dollars. In your answer provide 2 significant figures after the decimal point. For example, $5.12 million has 2 significant figures: $5.5 million only has 1 significant figures For full and for partial credit you must post your calculation and explanations to this Exam's dropbox after completing the exam. Show your calculation steps in a way that I can understand Your

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