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. Tomorrow, Kansas Co. must pay 10 million Mexican pesos for supplies that it recently received from Mexico. Today, the peso has appreciated by 3
. Tomorrow, Kansas Co. must pay 10 million Mexican pesos for supplies that it recently received from Mexico. Today, the peso has appreciated by 3 percent against the dollar. Based on an analysis of historical time series, Kansas has determined that whenever the peso appreciates against the dollar by more than 1 percent, it experiences a reversal of approximately 60 percent of that change on the following day. Given this forecast, what should Kansas Co. ? Peso appreciate/ depreciate tomorrow? Make payment today or tomorrow
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