Question: This question is multi tiered, but I ONLY need answer for #5. I have included the other parts of the question to provide needed information
This question is multi tiered, but I ONLY need answer for #5. I have included the other parts of the question to provide needed information and context, without violating the 1 question rule. Again, I ONLY need answer for #5. Please and thanks!


need 5 only

Question 1 1 pts Questions 1-8 are based on the following information: Boeing sold an aircraft, Boeing 777, to Lufthansa Airlines, a German company, and billed 30 million payable in one year. Boeing is concerned with the USD proceeds from international sales and would like to control exchange risk. The current spot exchange rate is $1.05/ and one-year forward exchange rate is $1.10/ at the moment. Boeing can buy a one-year option on euro with a strike price of S1.12/ for a premium of $0.02 per euro. Currently, the annual interest rate is 5% in the euro zone and 600 in the US This is an case for Boeing. A/P A/R D Question 2 1 pts If Boeing wants to hedge the transaction exposure using forward, Boeing should enter aposition in a forward contract of 30 million due in one year. e long e short D Question 3 1 pts If Boeing enters a forward euro contract today, the guaranteed dollar proceeds for this international sale in one year should be S million. Question 4 1 pts If Boeing wants to hedge the transaction exposure using money market hedge, Boeing should O borrow PV of euro and buy USD today, and deposit USD in the bank and sit on it. o buy PV of euro today using USD, and deposit euro in the bank and sit on it. Question 5 1 pts If Boeing uses MMH, the guaranteed dollar proceeds in one year should be $ million (Please write your number in million S and leave 3 decimal points if it is not a whole number. For example, if your answer is $50 million, write your answer as "$50" million. If your answer is $50.3 million, please write your answer as "$50.300" million.)
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