Airbus sold an a400 aircraft to delta airlines a us company, Ask an Expert

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Airbus sold an A400 aircraft to Delta Airlines, a U.S. company, and billed $30 million payable in six months. Airbus is concerned about the euro proceeds from international sales and would like to control exchange risk. The current spot exchange rate is 1.05 $/euro and the six-month forward rate exchange rate is 1.10 $/euro. Airbus can buy a six-month put option on U.S. dollars with a strike price of 0.95 euro/$ for a premium of .02 euro per U.S. dollar. Currently, the six- month interest rate is 2.5% in the euro zone and 3% in the United States.

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Financial Management, Finance

Category:- Financial Management
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