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A firm has a payable of C$1,500,000.00. They hedge this exposure with a call option with a strike price of $1.9500/C$. The premium of the

A firm has a payable of C$1,500,000.00. They hedge this exposure with a call option with a strike price of $1.9500/C$. The premium of the option is $0.1365. What is the firm's maximum total cost?

(a) $3,129,750 (b) $3,100,500 (c) $2,925,000 (d) $2,720,250

The answer is (a) $3,129,750, need help with the math.

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