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QUESTION 8 Toybot is a US company that exports robotic toys to Mexico. The company expects to receive 5.000.000 Mexican Peso (MXN) in ons waar

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QUESTION 8 Toybot is a US company that exports robotic toys to Mexico. The company expects to receive 5.000.000 Mexican Peso (MXN) in ons waar from Data The firm expects the following exchange rate scenarios and probabilities: Scenario A B Probability Spot rate in one year $0.0338 $0.0545 50.0552 0.5 0.4 10.1 The spot rate is S0.0545 per peso and the one-year forward rate is $0.0556 per peso. The U.S. interest rate is 2% and the Mexican interest rate's 118. Aput option on pesos expiring in one year costs $0.0037 per peso and has an exercise price of 50.0545 per peso. What is optimal hedging strategy for the company? O Forward contract O Money market hedge Call option No hedge

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