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Assume that Smith Corp. will need to purchase 200,000 British pounds in 90 days for...

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Finance

Assume that Smith Corp. will need to purchase 200,000 British pounds in 90 days for a payableA call option exists on British pounds with an exercise price of $1.68, a 90-day expiration date, and a premium of $0.04. A put option exists on British pounds with an exercise price of \$1.69 , a 90-day expiration date, and a premium of $0.03. Smith Corporation plans to purchase options to cover its future payables. It expects the spot rate of the pound to be $1.76 in 90 days. Determine the amount of dollars it will pay for the payables, including the amount paid for the option premium. 332,000 O $344.000 $336,000 $338,000 $ 360,000

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