A Mexican corporate treasurer expects to receive a 15 million payment in 180 days from a French customer. The current spot rate is 0.08/Mex$ and the 180-day forward rate is 0.05/Mex$. Moreover, the annualized six-month euro and peso interest rates are 7.8% and 10.3%. (Note: Mex$ is the symbol of Mexican peso). Please answer following questions:

A. What is the hedged value of the euro receivable using the forward contract?

B. Describe how the Mexican treasurer could use a money market hedge to lock in the peso value of the euro receivable.

C. Given your answers in parts a and b, is there an arbitrage opportunity?