1. A U.S. corporation has purchased currency call options to hedge a 700,000 pound payable. The premium is $.06 and the exercise price of the option is $1.15. If the spot rate at the time of maturity is $1.25, what is the total amount paid by the corporation if it acts rationally?

   	a.	$844,100
   	b.	$833,600
   	c.	$847,400
   	d.	826,900