10.15 Terry McDermott and Aidan. Aidan-the Ireland- based company discussed in this chapter-has con- cluded another large sale of telecommunications equipment to Regency (U.K.). Total payment of 3,000,000 is due in 90 days. Terry McDermott has also learned that Aidan will only be able to borrow in the United Kingdom at 14% per annum (due to credit concerns of British banks). Given the follow- ing exchange rates and interest rates, what transaction exposure hedge is now in Aidan's best interest? Value 3,000,000.00 1.0920 1.0750 6.000% 8.000% Assumption 90-day A/R in pounds Spot rate, euro per pound (/) 90-day forward rate, euro per pound (/) 3-month euro investment rate 3-month euro borrowing rate 3-month U.K. investment interest rate 3-month U.K. borrowing interest rate Aidan's WACC Expected spot rate in 90 days (/) Put options on the British pound: 8.000% 14.000% 12.000% 1.1000 Premium Strike rate (E/) 1.07 1.04 1.500% 1.000%