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Please use the following information for the next 2 questions. The nominal annual interest rate in Mexico is 10.80%. The nominal annual interest rate in

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Please use the following information for the next 2 questions. The nominal annual interest rate in Mexico is 10.80%. The nominal annual interest rate in the U.S. is 5.40%. Megan expects that annual inflation will be about 9.25% in Mexico and 3.20% in the U.S. The spot rate of the Mexican peso is $0.0580 per Mexican peso. Megan will receive 1 million Mexican pesos in one year. Determine the expected amount of dollars that Megan will receive if Megan uses an option hedge and believes in purchasing.power parity (PPP) (i.e., the spot rate one year later is determined by PPP). Both put options and call options on Mexican pesos are available with one year expiration date with an exercise price of $0.0540/MXP and a premium of $0.0040/MXP. $58,788.10. $54,788.10. $50,000.00. $50,788.10. Determine the amount of dollars that Megan will receive if Megan uses a forward hedge and believes that IRP (interest rate parity).presently exists (i.e., the forward rate is determined by the IRP). $57,788.27. $63,365.00. $60,971.54. $55,173.29

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