You believe that IRP presently exists. The nominal annual interest rate in Mexico is $11$ percent. The nominal annual interest rate in the United States is $3$ percent. You expect that annual inflation will be about $5$ percent in Mexico and $7$ percent in the United States. The spot rate of the Mexican peso is $$0\mathrm{.}11.$ Put options on pesos are available with a one$-$year expiration date, an exercise price of $$0\mathrm{.}1106,$ and a premium of $$0\mathrm{.}019$ per unit.

You will receive $1$ million pesos in one year. Do not round intermediate calculations. Round your answers to the nearest dollar.

Determine the expected amount of dollars that you will receive if you use a forward hedge.

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Determine the expected amount of dollars that you will receive if you do not hedge and believe in purchasing power parity $($PPP$).$

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Determine the amount of dollars that you will expect to receive if you believe in PPP and use a currency put option hedge. Account for the premium you would pay on the put option.

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