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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 pesos in months, and the current exchange rate on the peso $peso You decide on a money market hedge where the annual interest rate in the US for borrowing is and for investing, and the annual interest rate in Mexico is for borrowing and 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 over the next months? Enter this number as a negative since this is a cost no commas
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