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The U.S. government is purchasing medications from a British pharmaceutical for GBP 38,466,879. To hedge...

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Finance

The U.S. government is purchasing medications from a British pharmaceutical for GBP 38,466,879. To hedge its position, the government entered in a call option contract with exercise price of $ 1.43 / GBP and premium of $ 0.03 / GBP.

How much will be the ultimate dollar cost of the medications if at expiration to spot rate is $ 1.37 /GBP.

Provide your answer rounded to the nearest integer.

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