A U.S. company has British pound 2 million payables in 90 days. The company decide to use option contracts to manage its FX risk from this international transaction and has the following information about the option contracts. A 90 day call option contract for BP 2 million with strike rate = $1.74/BP, call premium per British pound is $0.02 A 90 day put option contract for BP 2 million with strike rate = $1.75/BP, put premium per British pound is $0.02

Calculate US$ cost or US$ net revenue of the US company at the expiration date of the option based on the decision

Group of answer choices $3.54 million

$3.52 million

$3.48 million

$3.56 million