Boeing just signed a contract to sell a Boeing 737 aircraft to Air France. Air France will be billed €10.14 million paya

[answerhappygod]

Boeing just signed a contract to sell a Boeing 737 aircraft to
Air France. Air France will be billed €10.14 million payable in one
year. The current spot exchange rate is $1.07/€ and the one-year
forward rate is $1.12/€. The annual interest rate is 8 percent in
the United States and 7 percent in France. Boeing is concerned with
the volatile exchange rate between the dollar and the euro and
would like to hedge exchange exposure.
a. It is considering two hedging
alternatives: sell the euro proceeds from the sale forward or
borrow euros from Crédit Lyonnaise against the euro receivable.
Which alternative would you recommend?
b. Other things being equal, at what
forward exchange rate would Boeing be indifferent between the two
hedging methods? (Do not round intermediate
calculations. Round your answer to 2 decimal places.)