Nike is expecting a payment of 10 mio in 6 months (they are long GBP). The Forward is : $1.3000/

Nike Purchases a 6 month Put/$ Call Struck at $1.3000/ , for $.06/

How much will it cost them to buy the GBP put, and what is the break even on the ENTIRE position (the expected revenue + the option premium)?

Hint: Remember the gain and the breakeven occur as GBP rises.

	A.	The option costs 400,500, and the break even is $1.2550/
	B.	The option costs $600,000 and the break even is $1.2050/
	C.	The option costs $600,000 and the break even is $1.2400/
	D.	The option costs $600,000 and the break even is $1.3600/