$($Transaction Exposure$)$Trident $-$ A U$.$S$.-$based company, has concluded a sale of

telecommunications equipment to Regency $($U$.$K$.).$ A total payment of $2,000,000$

is due in $90$ days. The following table shows relevant exchange rates and interest

rates. To hedge, the company is considering using $2,000,000$ put options with a

strike of $$\frac{1\mathrm{.}55}{}.$ The minimum net receipt $($accounting for the cost$)$ from such

options hedge is $$.$

in $90$ days. $($Keep two decimal places$/)$

Assumptions

$90-$day $\frac{A}{R}$ in pounds

Spot rate, US$ per pound $(\frac{\text{\$}}{})$

$90-$day forward rate, US$ per pound $($$$/)$

$3-$month U$.$S$.$ dollar investment rate

$3-$month U$.$S$.$ dollar borrowing rate

$3-$month UK investment interest rate

$3-$month UK borrowing interest rate

Put options on the British pound: Strike rates,

US$$/$pound $(\frac{\text{\$}}{})$

Strike rate $(\frac{\text{\$}}{})$

Put option premium

Strike rate $(\frac{\text{\$}}{})$

Put option premium

Strike rate $(\frac{\text{\$}}{})$

Call option premium

Trident's WACC

Maria Gonzalez's expected spot rate in $90$ days, US$

per pound $(\frac{\text{\$}}{})2,000,000\mathrm{.}00$

$$1\mathrm{.}5610$

$$1\mathrm{.}554$

$13\mathrm{.}000\%$

$11\mathrm{.}000\%$

$6\mathrm{.}500\%$

$8\mathrm{.}000\%$

$$1\mathrm{.}55$

$1\mathrm{.}3\%$

$$1\mathrm{.}54$

$1\mathrm{.}2\%$

$$1\mathrm{.}55$

$2\mathrm{.}1\%$

$11\mathrm{.}000\%$

$$1\mathrm{.}5431$