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Assume that Vermont Co. has net payables in Mexican pesos in 180 days. The Mexican interest rate is 7% over 180 days, and the spot

Assume that Vermont Co. has net payables in Mexican pesos in 180 days. The Mexican interest rate is 7% over 180 days, and the spot rate of the Mexican peso is $0.10. Suggest how the U.S. firm could implement a money market hedge. Provide an example and explain.

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