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please show full work D. There is a payable in Mexican pesos of 50 million. Presuppose the Spot rate now, spot rate in one year
please show full work 
D. There is a payable in Mexican pesos of 50 million. Presuppose the Spot rate now, spot rate in one year and forward rate now are 25. 24 and 22 MXN/S, respectively. The premium for calls of an exercise price of MXN/$ 20. 22 and 24 is 2%. The premium for puts of strike price MXN/$ 20.22.25 is 1.5%. Hedge through the forward and money market Step by Step Solution
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Introduction To Estimating Economic Models
Authors: Atsushi Maki
1st Edition
0415589878, 978-0415589871
