Schweser Exam 3 Afternoon Session Q18.2 pp178 represents, effective, borrowed

mfleming1983

Hope someone can confirm this. Thanks.
Question.
Is the call premium paid now since we need to compute the FV of the premium to work out the Annualised effective rate for the 180 day loan?
Basically the working assumed it is paid now once you purchase the call option, and assumed you borrowed it at the current 90 day LIBOR + spread of 1.5% (this represents the “effective interest cost of the call premium”).