Money Market Hedge on Payables Assume that Vermont Co. has net payables of 200,000 Mexican pesos in

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Money Market Hedge on Payables 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.

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