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Please use the following information for the next 2 questions. The nominal annual interest rate in Mexico is 1 0 . 8 0 % .
Please use the following information for the next questions.
The nominal annual interest rate in Mexico is The nominal annual interest rate in the US is Megan expects that annual inflation will be about in Mexico and in the US The spot rate of the Mexican peso is $ per Mexican peso.
Megan will receive million Mexican pesos in one year.
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Determine the amount of dollars that Megan will receive if Megan uses a forward hedge and believes that IRP interest rate paritypresently exists ie the forward rate is determined by the IRP
$
$
$
$
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