Atlantis Corp. will pay 888,000 pounds (GBP) in 90 days. A 90-day European call option on the pound with an exercise price of USD 1.8131 sells for USD 0.11. A 90-day European put option on the pound with an exercise price of USD 1.8138 sells for USD 0.07. The spot rate is USD 1.6383/GBP and the 90-day forward rate is USD 1.7559/GBP. The company will hedge its exposure by using currency options. Assume the spot rate in 90 days is USD 1.7045/GBP, what will be the net amount paid in USD, provided that the company acts rationally.

Select one:

a. 1,611,276

b. 1,513,596

c. 1,656,919

d. 1,478,698