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Walt Disney expects to receive a Mex$ 1 6 1 6 million theatrical fee from Mexico in 9 0 9 0 days. The current spot

Walt Disney expects to receive a Mex$16 million theatrical fee from Mexico in 90 days. The current spot rate is $0.1321/Mex$, and the 90-day forward rate is $0.1242/Mex$.
(A). What is Disneys peso transaction exposure associated with this fee?
(B). If the spot rate expected in 90 days is $0.1305, what is the expected U.S. dollar value of the fee?
(C). What is the hedged dollar value of the fee?
(D). What factors will influence the hedging decision?

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