Please show all your calculations to understand the problems

1) TABLE 8.1 Use the table to answer following question(s). April 19, 2009, British Pound Option Prices (cents per pound, 62,500 pound contracts). f1q9g1.jpg Refer to Table 8.1. The exercise price of ________ giving the purchaser the right to sell pounds in June has a cost per pound of ________ for a total price of ________.

A) 1450; 1.02 cents; $637.50

B) 1440; 1.42 cents; $887.50

C) 1460; 0.68 cents; $425.00

D) 1440; 1.06 cents; $662.50

2) A U.S. corporation has purchased currency call options to hedge a 70,000 pound payable. The premium is $.02 and the exercise price of the option is $.50. If the spot rate at the time of maturity is $.65, what is the total amount paid by the corporation if it acts rationally? (Please ignore the time value of premium)

A)		$33,600.
B)		46,900
C)		36,400
D)		44,100