Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed 15 million payable in one year. The money market interest rates and foreign exchange rates are given as follows: The U.S. one-year interest rate 6.10% per annum The euro zone one-year interest rate 9.00% per annum The spot exchange rate $1.50/E The one-year forward exchange rate $1.46/E Assume that Boeing sells a currency forward contract of 15 million for delivery in one year, in exchange for a predetermined amount of U.S. dollars. 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. Boeing gained $0.9 million from forward hedging
d. a) and b)
e. none of the above