You work for a New York based bank providing help with customer currency exposure. The spot Mexican Peso is 17.24 MEX/$. You are approached by an exporter; he is expecting to receive 100 million Mexican Peso in 6 months. He would like to guarantee his US Dollar revenue in six months. You can borrow and lend any amount in the US at 5.0% and in Mexico at 11.25% .

You cannot use the forward or futures markets. Calculate and show all transaction you need to take to hedge the exporter currency exposure. Do not expose your employer to any exchange risk, show all the transaction taken (borrowing and lending in the US and/or Mexico).