Acme Corporation, located in the United States, purchased inventory from a japanese firm and payment of 800 million yen is due in one year. The current spot rate is 114yen/USD and the one-year forward rate is 109yen/USD. The annual interest rate is 3 percent in Japan and 5 percent in the United States. Acme can also buy a one-year option on yen at the strike price of $0.0086/yen for a premium of $0.00011 per yen. Assume that the forward rate is the best predictor of the future spot rate. What is the expected dollar cost at the time of payment if Acme decides to hedge using an option contract? A. $6,787,600 B. $6,877,000 C. $6,972,400 D. $ 7,316,400