Trident - the same U.S.-based company discussed in this chapter, has concluded a second larger sale of telecommunications equipment to Regency (U.K.). Total payment of 2,000,000 is due in 90 days. Given the following exchange rates and interest rates, what is the break- even investment rate (for money market hedge) when comparing the forward hedge and money market hedge? Value 2,000,000.00 $1.5610 $1.5421 4.000% 6.000% 4.500% 8.000% Assumptions 90-day A/R in pounds Spot rate, US$ per pound (S/E) 90-day forward rate, US$ per pound (S/E) 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$/pound ($/C) Strike rate (S/E) Put option premium Strike rate ($/2) Put option premium Strike rate ($/C) Call option premium Trident's WACC Maria Gonzalez's expected spot rate in 90 days, USS per pound ($/C) $1.55 1.500% $1.54 1.000% $1.55 2.500% 9.000% $1.5431 Select one: a. 1.52% b. 3.06% c. 0.76% d. 3.20% e. 2.00%