You are US company, $300,000$ BP $($British Pound$)$ payable to UK in one year. Answer in terms of US$$.$

Information for Forward Contract:

Forward exchange rate $($one yr$)$: $1\mathrm{.}52$ $$/$BP

Information for Money Market Instruments $($MMI$)$:

Current exchange rate: $1\mathrm{.}48$ $$/$BP

Investment return at Aerion Fund Management $($in UK$)$: $6\%$ annual

Interest rate of borrowing from Bank of America $($in USA$)$: $1\%$ annual

Information you need for Currency Options Contract:

Options premium: $0\mathrm{.}015\frac{\text{\$}}{B}P$

Interest rate of borrowing from Bank of America $($USA$)$: $2\%$ annual

Allowed to exercise options at $1\mathrm{.}54$ $$/$BP

What are the costs of MMI? $($Answer in US$ of course. You are US company!$)$

$(1)$ about $$423,464$

Information you need for Currency Options Contract:

Options premium: $0\mathrm{.}015$ $$/$BP

Interest rate of borrowing from Bank of America $($USA$)$: $2\%$ annual

Allowed to exercise options at $1\mathrm{.}54$ $$/$BP

What are the costs of MMI? $($Answer in US$ of course. You are US compe

about $$423,464$

about $$462,423$

about $$423,056$

about $$442,971$