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Question 1 (6.25 points) Blueberry Co. (U.S. firm) will build airplanes and export them to Mexico for delivery in 4 years. The total payment to

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Question 1 (6.25 points) Blueberry Co. (U.S. firm) will build airplanes and export them to Mexico for delivery in 4 years. The total payment to be received in 4 years for these exports is 800 million Mexican pesos. Today the peso's spot rate is $0.08. The annual U.S. interest rate is 2%, regardless of the debt maturity. The annual peso interest rate is 10%, regardless of the debt maturity. Blueberry plans to hedge its exposure with a forward contract that it will arrange today. Assume that interest rate parity exists. What is the dollar amount that Blueberry will receive in 4 years? $591,452,583.84 $741,818,181.82 $47,316,206.71 $59,345,454.55

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