Assume that you have invested $100,000 in British equities. When purchased, the stock's price and the exchange rate were 40 and 0.40/$1.00 respectively. At selling time, one year after purchase, they were 60 and 0.60/$1.00. If the investor had sold 40,000 forward at the forward exchange rate of 0.45/$1.00, the dollar rate of return would be:

1. 13.90%
2. 7.58%
3. 22.22%
4. 17.09%