Foreign exchange exposure using options

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Reference no: EM133098237

Boing sold $400 million in turbines to a Mexican utility payable in 6 months and $600 million to a Spain utility payable in 1 year.

1. Compute the dollar proceeds from the sales if GE decides to hedge using forward contracts.

2. Compute the dollar proceeds from the sales if GE decides to hedge foreign exchange exposure using options.

Reference no: EM133098237

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