Withholding Tax correct, net, Investment, investing

bleach

Scenario:

USA & UK has tax treaty having a dividend withholding tax rate of 15%.

(I am a USA-citizen investing in the UK - bought 5000 shares).

Investment in the UK pays dividend of ￡0.40 per share.

Exchange rate = $1.61 / ￡

My pre-tax net US dollar dividends is equal to:

A) (5000 x ￡0.40 x $1.61 ) = $3220

B) (5000 x ￡0.40 x $1.61 ) x (0.85) = $2737

Schweser seem to go with answer B.

Are they correct or wrong?

THANKS!