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.

Assumptions		Value
90-day A/R in pounds		2,000,000.00
Spot rate, US$ per pound ($/)		$1.5610
90-day forward rate, US$ per pound ($/)		$1.5431
3-month U.S. dollar investment rate		5.000%
3-month U.S. dollar borrowing rate		8.000%
3-month UK investment interest rate		7.500%
3-month UK borrowing interest rate		9.000%
Put options on the British pound: Strike rates, US$/pound ($/)
Strike rate ($/)		$1.55
Put option premium		1.552%
Strike rate ($/)		$1.54
Put option premium		1.545%
Strike rate ($/)		$1.55
Call option premium		1.51.%
Trident's WACC		1.56.000%
Maria Gonzalez's expected spot rate in 90 days, US$ per pound ($/)		$1.5431