A US company has bought 30 personal computers from a British company for 62,500. Its payment must

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A US company has bought 30 personal computers from a British company for £62,500.

Its payment must be made in British pounds 90 days from now. The premium for a pound call option with a strike price of $$1.60$ and a 90-day expiration date is $$0.04$ per pound.

The current spot rate for pounds is $$1.58;$ the US company expects that the spot rate in 90 days will rise to $$1.66.$ The US company has two alternatives: do not hedge and hedge in the options market. Should the US company choose the call option hedge or the no hedge?

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