Walt Disney expects to receive a Mex$16 million theatrical fee from Mexico in 90 days. The current spot rate is $0.0915/Mex$, and the 90-day forward rate is $0.0903/Mex$.

a. What is Disneys peso transaction exposure associated with this fee?

b. If the spot rate expected in 90 days is $0.0908, 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?