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To: Brilliant

>With the dollar going down, it may end up costing less than what Boeing was going to charge

Unless the EAD bean counters are brain dead, any production and sales in foreign currency have FOMEX hedges against currency swings.
Of course the hedges would only be partial, and I suspect that the higher price per unit reflects that expense to EAD.


15 posted on 03/01/2008 8:03:14 AM PST by bill1952 (I will vote for McCain if he resigns his Senate seat before this election.)
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To: bill1952

Yeah, I suspect that they thought about the declining dollar, but I also suspect that they determination to get the contract led them to look at it from an optimistic viewpoint. They probably have some protection in the contract. They probably have some hedging protection. But most importantly, they are probably counting on their government to bail them out if they misjudged.


17 posted on 03/01/2008 8:06:01 AM PST by Brilliant
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