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You own a Mexican firm that manufactures truck transmissions. One year from today, you have agreed to purchase CAD 1,113,080 worth of steel from a

You own a Mexican firm that manufactures truck transmissions. One year from today, you have agreed to purchase CAD 1,113,080 worth of steel from a Canadian supplier, and would like to protect yourself against exchange rate risk using a forward market hedge. The current spot rate is CAD 0.058 per MXN. You can borrow or lend CAD at 2.4%, and MXN at 2.5%. How many MXN would you need to borrow or lend to set up this hedge? Represent borrowing as positive numbers and lending as negative numbers. Please give your answer to the nearest MXN.

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