A US Bank Is Owed $10 Million in Interest from the the Mexican

A U.S. bank is owed $10 million in interest from the Mexican government organization in 90 days. If the Mexican manager thought that the value of the peso would fall in the next 90 days, which of the following would he choose to hedge the foreign exchange risk?

A) Buy U.S. dollars in a forward contract.
B) Wait 90 days and buy U.S. dollars in the spot market.
C) Buy a U.S. dollar T-bill now.
D) Either b or c would work.