Business, 29.11.2019 00:31 bjbass899

Assume that boeing sells a currency forward contract of €10 million for delivery in one year, in exchange for a predetermined amount of u. s. dollars. suppose that on the maturity date of the forward contract, the spot rate turns out to be $1.40/€ (i. e. less than the forward rate of $1.46/€). which of the following is true:
a) boeing gained $0.6 million from forward hedging.
b) boeing would have received only $14.0 million, rather than $14.6 million, had it not entered into the forward contract. additionally, boeing gained $0.6 million from forward hedging.
c) boeing would have received only $14.0 million, rather than $14.6 million, had it not entered into the forward contract.
d) none of the options.

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Assume that boeing sells a currency forward contract of €10 million for delivery in one year, in exc...