Arthur Doyle at Baker Street. Arthur Doyle is a currency trader for Baker Street, a private investment house in London. Baker Street's clients are a collection of wealthy private investors who, with a minimum stake of 250,000each, wish to speculate on the movement of currencies. The investors expect annual returns in excess of 25%. Although officed in London, all accounts and expectations are based in U.S. dollars.

Arthur is convinced that the British pound will slide significantlylong dashpossibly to $1.3200/ in the coming 30 to 60 days. The current spot rate is $1.4260/. Arthur wishes to buy a put on pounds which will yield the 25% return expected by his investors. Which of the following put options would you recommend he purchase? Prove your choice is the preferable combination of strike price, maturity, and up-front premium expense.

Strike Price			Maturity	Premium
$	1.36	/	30 days	$	0.00081	/
$	1.34	/	30 days	$	0.00021	/
$	1.32	/	30 days	$	0.00004	/
$	1.36	/	60 days	$	0.00333	/
$	1.34	/	60 days	$	0.00150	/
$	1.32	/	60 days	$	0.00060	/

A. The return on investment (ROI) at the strike price of $1.36/ is _____%. (Round to the nearest integer.)

B. The return on investment (ROI) at the strike price of $1.34/ is _____%. (Round to the nearest integer.)

C. The return on investment (ROI) at the strike price of $1.32/ is _____%. (Round to the nearest integer.)