1. A U.S. firm has payables of 250,000 in nine months. The U.S. purchases a call option on the pound. The strike price is $62/ and the premium is $.06/. What is the total dollar amount paid for the pound payable if the spot rate in nine months is (Multiply any $/ amount by 250,000)

• $1.51/

• $1.61/

• $1.70/

• $1.78/