Suppose that Baltimore Machinery sold a drilling machine to a Swiss firm and gave the Swiss client a choice of paying either $$11,800$ or $SF17,700$ in three months.

Required:

Baltimore Machinery effectively gave the Swiss client a free option to buy up to $$11,800$ using Swiss francs. What is the "implied" exercise exchange rate?

Note: Round your answer to $4$ decimal places.

Implied exercise rate