Assume that Vermont Co. has net payables of 200,000 Mexican pesos in 180 days.

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Assume that Vermont Co. has net payables of 200,000 Mexican pesos in 180 days.  The Mexican interest rate is 7% over 180 days, and the spot rate of the Mexican peso is $.10.  Suggest how the U.S. firm could implement a money market hedge.  Be precise.

 

    • 8 years ago
    Assume that Vermont Co. has net payables of 200,000 Mexican pesos in 180 days.
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