Assume that Smith Corporation will need to purchase 200,000 British pounds in 90 days. A call option exists on British pounds with an exercise price of $1.68, a 90day expiration date, and a premium of $.03. A put option exists on British pounds, with an exercise price of $1.68, a 90day expiration date, and a premium of $.02. Smith Corporation plans to purchase options to cover its future payables. It will exercise the option in 90 days (if at all). If the spot rate of the pound is $1.76 in 90 days. Determine the amount of dollars it will pay for the payables, including the amount paid for the option premium.

Group of answer choices

$342,000.

$332,000.

$336,000.

$344,000.

$352,000.