Proctoring Enabled: Chapter $8$ problems

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Problem $8\mathrm{.}4$ The current spot exchange rate is $$\frac{105}{}$ and the one$-$year forward rate is $$\frac{110}{C}.$ The annual interest rate is $6$ percent in the Unined States and $5$ percent in France, Boeing is concerned with the volarile exchange rate between the dollar and the euro and would like to hedge exchange exposure.

a$.$ It is considering two hedging alternatives: sell the euro proceeds from the sale forward or borrow euros from Cridit Lyomnaise against the euro receivable. Which alternative would you recommend?

$\backslash$table$[[,],[$Fonward hedge,$],[$Money market hedge,$],[$Recommend alternative,$]]$

b$.$ Other things being equal, at what forward exchange rate would Boeing be indifferent between the two hedging methods? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Forward exchange rate

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