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Business, 25.03.2020 00:14 Arealbot

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. Which of the following is/are true? On the maturity date of the contract Boeing will (i) have to deliver €10 million to the bank (the counter party of the forward contract). (ii) take delivery of $14.6 million (iii) have a zero net euro exposure (iv) have a profit, or a loss, depending on the future changes in the exchange rate, from this British sale

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