1. A put option on Australian dollars has a strike price of C$1.02/$A and a cost of C$0.07. What is the break-even exchange rate for the option? (No currency labels are necessary, round answer to two decimal places)

2. Solar Stars is taking out a $5,000,000 two-year loan at a variable rate of LIBOR plus 0.75%. The LIBOR rate will be reset each year at the beginning of the year. The current LIBOR rate is 3.00% per year and interest in year 1 will be based on this rate and resets for year 2 at the end of year 1. The loan has an upfront fee of 5.00%. Assume LIBOR in year 2 is set to 3.25% based on LIBOR being 3.25% at the end of year 1. What is the all-in-cost (i.e., the internal rate of return) of the Polaris loan including the LIBOR rate, fixed spread and upfront fee? (Round percentage answer to two decimal places and answer X.XX% as X.XX, without the percentage sign)