A U$.$S$.-$based insurance company owns a Mex $$10,000,000$ corporate bond and has Mex $$4,000,000$ of claims reserves. It has also bought Mex $$2,000,000$ and sold Mex $$3,000,000.$ The current exchange rate is $$\frac{0\mathrm{.}059}{?}$ Mex$$.($Mex$ indicates Mexican pesos.$)$

a$.$ Calculate the bank's dollar net exposure to Mexican pesos. Note that your answer should be in U$.$S$.$ dollars. $(10$ points$)$

b$.$ If the dollar$-$per$-$Mexican peso exchange rate decreases by $11\%,$ what is the bank's dollar expected gain or loss? $(6$ points$)$

c$.$ What position in a forward contract based on Mexican pesos could the insurance company take to hedge its foreign exchange rate risk? Be sure to explain how this position will hedge the insurance company's risk in your response. $(4$ points$)$