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Dakota Co must pay 7 million Mexican pesos by tomorrow, in exchange for supplies that it has agreed to purchase from a supplier in Mexico.

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Dakota Co must pay 7 million Mexican pesos by tomorrow, in exchange for supplies that it has agreed to purchase from a supplier in Mexico. The peso depreciated today against the dollar by 6 percent. Using time series data of past currency fluctuations, Dakota observes whenever the peso depreciates against the dollar by more than 1 percent, there is a reversal whereby the peso then appreciates by 70 percent of that change on the following day. Given the results of the forecasting by Dakota Co, the firm will most likely decide to the dollar by 6 percent. Usin the dollar by more than 1 percent, f the forecasting fundamental technical Given the results of the fo make its payment today instead of tomorrow make its payment tomorrow instead of today

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