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2. Hansen, Inc. will receive 90 million Mexican pesos in eight years. The current spot rate for the peso is $0.075. The current eight-year interest

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2. Hansen, Inc. will receive 90 million Mexican pesos in eight years. The current spot rate for the peso is $0.075. The current eight-year interest rate in the U.S. is 10% annually and 14% annually in Mexico. Hansen hedges the peso receivable using a eight years? forward contract. Interest rate parity holds. How many dollars will Hansen receive in 3. Heckman conducts most of its business in the United States but it has a significant volume of exports to South Korea. The exports are invoiced in South Korean won. In South Korea Heckman competes with several South Korean firms that incur all their costs and receive all their revenues in South Korean won. Starting January 1, 2020 Heckman will invoice all sales to South Korea in U.S. dollars. Discuss how this change in strategy changes Heckman's exchange rate risk. Consider both transaction risk and other forms of economic risk

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