Question: Please show work Question 3 1 pts You own a chain of US jewelry stores that purchases large amounts of silver from Mexican suppliers who

Please show work Question 3 1 pts You own a chain of Please show work

Question 3 1 pts You own a chain of US jewelry stores that purchases large amounts of silver from Mexican suppliers who expect payment in pesos. Each year, you spend MXN 544 M on silver. You want to use a currency swap to completely eliminate your exposure to exchange rate risk on these transactions. The notional is in Mexican pesos. The fixed leg of this swap would pay out based on an exchange rate of MXN 20.1 per USD, and the variable leg would pay out based on the spot rate. What exchange rate would you be locking in using this swap? Pleas express it in terms of USD per MXN

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