Nanotronics is neither a banker nor an FX (foreign exchange) dealer. It takes the rates and figures in the market as they are given to it.

Spot rate: Buy rate MXN 19.235/USD;

Spot rate: Sell rate MXN 19.385/USD

Nine-month forward rate: Buy rate MXN 20.115/USD

Nine-month forward rate: Sell rate MXN 20.265/USD

U.S commercial interest rate (borrowing) 4.5 percent

U.S commercial interest rate (lending) 1.0 percent

Mexico commercial interest rate (borrowing or lending) 6.5 percent

Please guide Nanotronics where to invest.

. What happens if Nanotronics relaxes its desire to stay riskless

4. Would it be possible to forecast the outcome if the risk factor is left open (not managed)? How?