Maria Gonzalez and Trident has concluded another large sale of telecommunications equipment to Regency (U.K). Total payment of 3,000,000 pounds is due in 90 days. Maria Gonzalez has also learned that trident will only be able to borrow in the United Kingdom at 14% per annum. Given the following exchange rates and interest rates, what transaction exposure hedge is now in Trident's best interest?

Assumption	Values
90-day A/R in pounds	3,000,000 pounds
Spot rate, US$ per pound ($/pounds)	$1.7620
90-day forward rate, US$ per pound ($/pounds)	1.7550
3-month U.S dollar investment rate	6%
3-month U.S dollar borrowing rate	8%
3-month U.K investment interest rate	8%
3-month U,K borrowing interest rate	14%
Put option on the British pound:Stike rates, US$/pound ($/pounds)
Strike Rate ($/pounds)	$1.75
Put option premium	1.5%
Strike rate ($/pounds)	$1.71
Put option premium	1%
Trident's WACC	12%
Maria Gonzalez's expected spot rate in 90-day US$ per pound ($/pound)	$1.785