(Answered) A us firm has a mxn 50000000 payable money they will owe to

Economics

A U.S. firm has a MXN 50,000,000 payable (money they will owe to a supplier, for example) due in 7 months. The current exchange rate is MXN11.25/$ and the U.S. firm fears the MXN could appreciate substantially over the next 7 months. The interest rate on 7-month MXN money market deposits is 4.15% (a periodic rate, not a yearly rate). How could the U.S. firm execute a money market hedge

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Business Economics, Economics

Category:- Business Economics
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