Need $2$nd answer Question A$,$ and Question B$.$ Please show work. Boeing just signed a contract to sell a Boeing $737$ aircraft to Air France. Air France will be billed $10\mathrm{.}12$ million payable in one year. The

current spot exchange rate is $$1\mathrm{.}05$ per euro and the one$-$year forward rate is $$1\mathrm{.}10$ per euro. The annual interest rate is $6$ percent in

the United States and $5$ percent in France. Boeing is concerned with the volatile exchange rate between the dollar and the euro and

would like to hedge exchange exposure.

Required:

a$.$ It is considering two hedging alternatives: sell the euro proceeds from the sale forward or borrow euros from Cr$$dit Lyonnaise

against the euro receivable. Which alternative would you recommend?

b$.$ Other things being equal, at what forward exchange rate would Boeing be indifferent between the two hedging methods?

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Other things being equal, at what forward exchange rate would Boeing be indifferent between the two hedging methods?

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

Forward exchange rate