Airbus sold an A400 Aircraft to Delta Airlines, a U.S Company, and billed $30 million payable in six months. Airbus is c

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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/€
and the six-month forward exchange rate is $1.10/€. Airbus can buy
a six-month put option on U.S. dollars with a strike price of
€0.95/$ for a premium of €0.02 per U.S. dollar. Currently,
six-month interest rate is 2.5 percent in the euro zone and 3.0
percent in the United States.