(Transaction Exposure) Trident A U.S.-based company, has concluded a sale of telecommunications equipment to Regency (U.K.). A total payment of 2,000,000 is due in 90 days. Given the following exchange rates and interest rates, the break-even investment rate (for money market hedge) is % when comparing the forward hedge and the money market hedge. Value 2,000,000.00 $1.5610 $1.5436 6.000% 6.000% 6.500% 8.000% Assumptions 90-day A/R in pounds Spot rate, US$ per pound ($/) 90-day forward rate, US$ per pound ($/) 3-month U.S. dollar investment rate 3-month U.S. dollar borrowing rate 3-month UK investment interest rate 3-month UK borrowing interest rate Put options on the British pound: Strike rates, US$/pound ($/) Strike rate ($/) Put option premium Strike rate ($/) Put option premium Strike rate ($/) Call option premium Trident's WACC Maria Gonzalez's expected spot rate in 90 days, US$ per pound ($/) $1.55 1.554% $1.54 1.54% $1.55 1.511.% 14.000% $1.5431