A U.S. Corporation, Eternal Beauty, Inc., imports 125,000 British Pounds ( ) worth of cosmetics from England. It has a choice of getting 2% discount from the supplier if it were to pay now (in ); otherwise the whole invoice amount (in ) is due in three months. The foreign exchange spot rate is US\$1.20/. Eternal Beauty has the following choices: a. Borrow from a U.S. bank for 3 months to take advantage of the 2% discount. The bank will charge a 15% annual interest rate. How much will Eternal Beauty have to pay the bank in 3 months? b. If Eternal Beauty were to hedge its position with a 3-month forward contract at a forward exchange rate of US\$1.22/, how much US\$ is needed to make the payment in 3 months? c. Eternal Beauty could also use an option to hedge 125,000 in payables. The premium paid is US\$0.02/ and the exercise price is US\$1.21/. If the option is exercised, what is the total dollar amount paid (including the premium)