Trident CFO, Maria Gonzalez, has just complete a purchase of commu- Suppose that: . The spot rate is $1.7640/E . UK three-month borrowing rate is 10.0% (2.5% per quarter) . US three-month investing interest rate is 6.0% (1.5% per quarter) . Three-month call and put option for 1 million with strike price $1.75/ nication equipment from a British firm for 1 million due in three months. is 1.5% premium . The spot rate is $1.7640/ . Trident's cost of capital is 12% (3% per quarter) . Three-month forward rate is $1.7540/ How much in U.S. dollars will Trident pay in 3 months with an option hedge if the expected spot rate in 3 months is assumed to be more than $1.75/? To be $1.80/