Macy's recently bought products from Japanese trading partner and is scheduled to pay 5 million Yen in 90 days. The spot exchange rate is $0.013/yen If Macy's wants to use option hedge, the option premium is 1.5% of the total hedged value. The option's strike (or exercise) price is $0.017/ yen. If the option has intrinsic value upon maturity, (thus will be exercised), how much will be Macy's total USD payment in 90 days? (Hint: there are 2-3 steps in the calculation, and you need to calculate the option contract cost first.) (Must show your work to earn credit)