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Toybot is a U.S. company that exports robotic toys to Mexico. The company expects to receive 5,000,000 Mexican pesoa (MXN) in one year from its
Toybot is a U.S. company that exports robotic toys to Mexico. The company expects to receive 5,000,000 Mexican pesoa (MXN) in one year from its exports. The firm expects the following exchange rate scenarios and probabilities: Scenario Spot rate Probability 1n one year $0.0538 0.4 0.1 B $0.0545 $0.0552 The spot rate is $0.0545 per peso and the one-year forward rate is $0.0556 per peso. The US. interest rate is 2% and the Mexican interest rate is 11%. A put option on pesos expiring in one year costs $0.0037 per peso and has an exercise price of $0.0545 per peso. What is the value of the receivables in one year with a money market hedge (in $)? $245,495 $260,320 $250,405 $250,350
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