@xml:base without trailing slash

When an @xml:base value does not end with a slash, how should nested 
relative URIs be resolved?

This example appears in the xml:base spec.

<doc xml:base="http://example.org/today/" >
.
.
   <olist xml:base="/hotpicks/">
   .
   .
         <link href="pick1.xml">Hot Pick #1</link>


The spec says the href should resolve to

http://example.org/hotpicks/pick1.xml


What would the resolution be if the olist element were like this,

   <olist xml:base="/hotpicks">


that is, didn't have the trailing slash? Would it be

(1) http://example.org/hotpicks/pick1.xml
(2) http://example.org/hotpickspick1.xml

or (3) neither one because the encoding was an error, or (4) either one, 
whichever the application developer wants?

I think it's (1), that a trailing slash is always optional, but I'm not 
sure and don't see where this is explicitly addressed.

-- JPM