"Ali Hopkins" wrote in message
...

"Tarver Engineering" wrote in message
...

"Ali Hopkins" wrote in message
...

"Tarver Engineering" wrote in message
...

The Euro tanked, while the pound held above $1.60. If BA made their
purchase at the two euro to the Pound rate, they did very well on
the
deal.
AI exists under a complicated interleaved set of money hedges.



What on earth are you talking about. The pound started at, what, 1.70
Euros
equivalence - I bought a stack at that level. Even given good forward
Forex
buying, there is no way that BA could have hedged at two, especially
given
the timing. And it's now at 1.43-ish or thereabouts.

If BA and AI don't have a hedge in place, there will be much less
interest
in the airplane deliveries.



I am quite sure that BA do have hedges in place. I am also quite sure that
they aren't at your imaginary rate of 2 Euros to the pound sterling.

The EU went to 78 cents, while the Pound was $1.58.

I doubt
that any forward spot trader would have offered anything close to even the
start rate of 1.70-ish. And, of course, they have already taken
substantial
deliveries.

A one third swing in value palces Boeing products at a substancial discount
to what they were a year ago.