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Assume the following information: Spot rate of Mexican peso = $.100 One year forward rate of Mexican peso = $.098 One year Mexican interest rate

Assume the following information:

Spot rate of Mexican peso = $.100

One year forward rate of Mexican peso = $.098

One year Mexican interest rate = 6%

One year U.S. interest rate = 5%

Given this information, is worthwhile for Mexican investors who have pesos to invest? Carefully illustrate and explain your answer.

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