Perform an analysis of high rates that may exist

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Question: Embraer of Brazil is one of the two leading global manufacturers of regional jets (Bombardier of Canada is the other). Embraer has concluded an agreement with a regional U.S. airline to produce and deliver four aircraft one year from now for $80 million. Embraer will be paid in U.S. dollar. The current spot rate on the Brazilian real (R$) is R$3.39. A chart of the last year's exchange rate is shown below: Based on the graph, perform an analysis of high/low rates that may exist in the future.

Reference no: EM133326221

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