Telmex dual listing and the Mexican peso devaluation. Shares of Telefonos Mexicanos (Telmex) listed on the New

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Telmex dual listing and the Mexican peso devaluation. Shares of Telefonos Mexicanos

(Telmex) listed on the New York Stock Exchange fell from $60 to $48 when the Mexican peso (MXN) was devalued on December 19, 1994, from MXN 3. 44 = US$1 to MXN 6. 05 = US$1.

a. Compute the percentage depreciation of the Mexican peso.

b. As a trader for Barings Securities specializing in Mexican stocks, do you see profit opportunities? What are the risks involved?

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International Corporate Finance Value Creation With Currency Derivatives In Global Capital Markets

ISBN: 9781119550464

2nd Edition

Authors: Laurent L. Jacque

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Question Posted: Mar 09, 2024 01:00 AM

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Shares of Telefonos Mexicanos (Telmex) listed on the New York Stock Exchange fell from US$60 to US$48 when the Mexican peso (MXN) was devalued on December 19, 1994, from MXN3.44 to MXN 6. 05 = $1. a....
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Telmex dual listing and the Mexican peso devaluation. Shares of Telefonos Mexicanos (Telmex) listed on the New

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International Corporate Finance Value Creation With Currency Derivatives In Global Capital Markets

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