On a recent sale, Boeing allowed British Airways to pay either $18 million or £10 million.
A) At the due date, British airways will be indifferent between paying dollars or pounds since they would of course have hedged their exposure either way.
B) Boeing has provided British Airways with a free option to buy $18 million with an exercise price of £10 million.
C) Boeing has provided British Airways with a free option to sell up to £10 million with an exercise price of $18 million.
D) All of the above
Correct Answer:
Verified
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