the italian airline alitalia will pay $10 million to United Airlines one year from today. The spot rate is $1.35/E, while the 1-year forward rate is $1.40/E. The 1-year interest rate in the US is 5%, and the 1-year interest rate in the Euro Zone is 3%. What should alitalia do to hedge its transaction exposure
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Home » Business » the italian airline alitalia will pay $10 million to United Airlines one year from today. The spot rate is $1.35/E, while the 1-year forward rate is $1.40/E.