Show your 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/$, respectively. The premium for calls of an exercise price of MXN/$ 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 options markets.