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Micca Metals, Inc. is a specialty materials and metals company located in Detroit.The company specializes in specific precious metals and materials that are used in a variety of pigment applications.Micca just purchased a shipment of phosphates from Australia for AUD6,000,000 payable in six months.Six month at-the money call options on AUD6,000,000 at an exercise price of USD0.9000/AUD1 are available at a premium of 3%.

What is the break-even exchange rate?

Select one:

a. USD0.8700/AUD

b. USD0.9000/AUD

c. USD0.9300/AUD

d. Cannot be determined