Assume that today is June 30 . You have been asked to help a UK client who is scheduled to pay SUS3,000,000 on September 30, 92 days into the future. Assume that your client can borrow and lend pounds at 5% per annum. [Assume that in the UK, interest calculations are made on the basis of a 365 day year.] (a) Describe the nature of your client's transaction exchange risk. (2 Marks) (b) What is the option cost for a September 30 maturity with a strike price of S G0.70/USDI to hedge the transaction? The option premiums per 100 dollars are STG1.75 for calls and STG2.45 for puts. (2 Marks)