5. A U.S. company ordered a Jaguar sedan. In 6 months, it will pay 30,000 for the car. It worried that pound sterling might rise sharply from the current rate($1.90). So, the company bought a 6 month pound call (supposed contract size = 35,000) with a strike price of $1.90 for a premium of 2.3 cents/. (1)Is hedging in the options market better if the rose to $1.92 in 6 months? (2)what did the exchange rate have to be for the company to break even? (15%)