Question: Question 20 1 pts Boeing imported a Rolls-Royce jet engine for 4 million in one year. Which of the following is true, given the market

 Question 20 1 pts Boeing imported a Rolls-Royce jet engine for

Question 20 1 pts Boeing imported a Rolls-Royce jet engine for 4 million in one year. Which of the following is true, given the market conditions of is=6%, if = 5.5%, So = $1.80/, F1 = $1.75/? O To hedge this FX exposure using forward contracts, Boeing should buy 4 million forward in exchange for $7,000,000 o If S1 - $1.70/, Boeing would have gained $0.2 million from forward hedging To hedge this FX exposure using forward contracts, Boeing should invest $4 million today in the United States

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