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The one-year forward price of the Mexican peso is $0.0750 per MXN. The U.S. risk-free rate is 1.25% and the Mexican risk-free rate is 4.5%.

The one-year forward price of the Mexican peso is $0.0750 per MXN. The U.S. risk-free rate is 1.25% and the Mexican risk-free rate is 4.5%. The exchange rate volatility is 13%. What is the value of on...

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