TKNY, a local subsidiary of a US company, owes Mex$ 7 million in 30 days for a recent shipment from Mexico. It faces the following interest and exchange rates: Spot rate: Mex$ 13.0/$ Forward rate (30 days) Mex$ 13.1/$ 30-day put option on dollars at Mex$ 12.9/$ 1% premium 30-day call option on dollars at Mex$ 13.1/$ 3% premium U.S. dollar 30-day interest rate (annualized): 7.5% Peso 30-day interest rate (annualized): 15% i. What is the hedged cost of TKNY's payable using a money market hedge? (5 marks)