Your company imports a product from a British firm. Assume that your company is obligated to pay 1,000,000 in 90 days in return for the product that will be delivered at that time by the British firm. Suppose that your company owns no pounds currently and is going to wait until 90 days in the future to purchase the British pounds. Suppose that the current spot exchange rate is $1.2500/ and your company expects the British pound to appreciate relative to the dollar by 1%. Then, your company expects to pay $_________________ 90 days from now to purchase the British pounds.

A. $790,079

B. $1,000,000

C. $1,250,000

D. $1,237,500

E. $1,262,500