2. You have been asked to help a British client who is scheduled to pay 1,600,000 91 days in the future. Assume that your client can borrow and lend pounds at 4.5% p.a. Describe the nature of your client's transaction exchange risk. What is the option cost for a 91-day maturity and a strike price of 0.68/ to hedge the transaction? The cost of the option per 100 euros are 1.65 for calls and 2.40 for puts. What is the maximum pound cost your client will experience in 91-days? Determine the value of the spot rate (/) after 91 days that makes your client indifferent ex post to having done the option transaction or a forward hedge if the forward rate for delivery after 91 days is 0.66/