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assume your company will have to pay 2 , 0 0 0 , 0 0 0 pesos in 6 months, and the current exchange rate

assume your company will have to pay 2,000,000 pesos in 6 months, and the current exchange rate on the peso 0.0450 $/peso. You decide on a money market hedge where the annual interest rate in the US for borrowing is 5.5% and 5.2% for investing, and the annual interest rate in Mexico is 9.5% for borrowing and 9% for investing. Assume these are annually compounded annual rates (remember that your cash flow is due in half a year). What will be the future value of the money market hedged position if the peso depreciates by 15% over the next 6 months? Enter this number as a negative since this is a cost (no commas).

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