JCT, Inc.is doing business with firms in Mexico. The current Mexican peso spot rate and interest rates over 180 days are $0.11 and 7.7%, respectively. JCT has 300,000 Mexican pesos payables in 180 days. How can the firm use the money market hedge? Show your calculations.

Answer rating: 100% (QA)

JCT can use a money market hedge to mitigate the risk of peso depreciation against the USD over the ... View the full answer