25 A U.S. corporation has purchased currency call options to hedge a 62,500 British pounds payable in 3 months. The premium is $.02 per unit and the exercise price of the option is $1.50. If the spot rate of the pound at maturity is $1.65, what is the total amount paid by the corporation if it acts rationally? a. $101,875 b. $103,125 c. $104,375 d. $95,000 e. $93,750

I know the answer is D but need to know the formula and steps to get there.