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You are US company, 5 0 0 , 0 0 0 ( British Pound ) payable to UK in one year. Answer in terms of

You are US company, 500,000(British Pound) payable to UK in one year. Answer in terms of US$.
Information for Forward Contract:
Forward exchange rate (one yr): 0.69/$
Information for Money Market Instruments (MMI):
Current exchange rate: 0.68/$
Investment return at Aerion Fund Management (in UK): 3.6% annual
The interest rate of borrowing from Bank of America (in USA): 2% annual
Information you need for Currency Options Contract:
Options premium: 67.6/$
Interest rate of borrowing from Bank of America (USA): 2% annual
Allowed to exercise options at 0.69/$
The finance management strongly believes the exchange rate at the time of payment will be 0.71/$. You wonder if you should sign the currency options contract by comparing the costs at the break-even exchange rate against your speculation exchange rate. What are the costs of COC at the break-even exchange rate AND COC costs at your speculation exchange rate, respectively? Choose the closest answer since your answer could be different from alternatives due to the rounding.

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