Alpaca corp. will pay 460,000 pounds (GBP) in 90 days. The current spot rate is USD 1.4883/GBP. The 90-day European call options on the pound with an exercise price of USD 1.6688/GBP are traded with a premium of USD 0.17 while the 90-day European put options on the pound with an exercise price of USD 1.7483/GBP are traded with a premium of USD 0.13. Suppose, Alpaca corp. wants to hedge its position using options. If the spot rate in 90 days is USD 1.8154/GBP, determine the companys net payment in USD if it acts rationally.

Select one:

a. 894,884

b. 845,848

c. 835,084

d. 767,648