Assume that Vermont Co. has net payables of 200,000 Mexican pesos in 180 days. The Mexican interest

Question:

Assume that Vermont Co. has net payables of 200,000 Mexican pesos in 180 days. The Mexican interest rate is 7 percent over 180 days, and the spot rate of the Mexican peso is $.10. Suggest how the U.S. firm could implement a money market hedge. Be precise.