What are two other ways swiss air might hedge

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On January 2d, 2017, Boeing expects to send 5 787s from its plant in Seattle, WA to Swiss Air, which it will sell on 270-day terms at $125 million each. Thus Boeing will receive payment from Swiss Air on September 27th, 2017. Assuming Swiss Air wants to hedge against a stronger US$ using a forward contract with a Swiss bank in the US, what is the amount of SF they should pay the Swiss Bank for dollars to pay Boeing on September 27th, 2017 given the nine month forward rate for one SF in terms of dollars that you calculated in problem one? What are two other ways Swiss Air might hedge its US$/SF exposure?

Reference no: EM131354278

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