Suppose That Boeing Corporation Exported a Boeing 747 to Lufthansa

Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed €10 million payable in one year.The money market interest rates and foreign exchange rates are given as follows: $$\begin{array} { l l } \text { The U.S. one-year interest rate: } & 6.10 \% \text { per annum } \\\text { The euro zone one-year interest rate: } & 9.00 \% \text { per annum } \\\text { The spot exchange rate: } & \$ 1.50 / € \\\text { The one-year forward exchange rate: } & \$ 1.46 / €\end{array}$$ Assume that Boeing sells a currency forward contract of €10 million for delivery in one year,in exchange for a predetermined amount of U.S.dollar.Suppose that on the maturity date of the forward contract,the spot rate turns out to be $1.40/€ (i.e.less than the forward rate of $1.46/€) .Which of the following is true?

A) Boeing would have received only $14.0 million, rather than €14.6 million, had it not entered into the forward contract
B) Boeing gained $0.6 million from forward hedging
C) a and b
D) none of the above