You have decided to use June futures to hedge the risk of a purchase of British Pound (BP). The purchase will be for 125,000 BP and will take place on May 1. The current spot price for BP is $1.43 per BP and the current June futures BP price is $1.49 per BP.

If the spot rate prevailing on May 1 is $1.55 per BP and the June futures price on May 1 is $1.59 per BP, then the effective U.S. Dollar cost to you of buying 125,000 BP (include any costs or benefits from hedging) is closest to

Group of answer choices

$206,250

$181,250

$193,750

$169,000