Suppose the spot rates for the pound, mark, and Swiss franc prior to 1999 were $1.20, $.32, and $.40, respectively. At the same time, the associated 90day interest rates (annualized) were 16%, 8%, and 4%, while the U.S. 90day interest rate was 12%. What was the 90day forward rate (to the nearest cent) on a TCU (TCU 1 = 1 + DM1 + SFr1) if interest parity were to hold?

a)$1.92

b)$1.98

c)$1.94

d)$1.87