An American Firm Sells Farm Equipment to a British Company

An American firm sells farm equipment to a British company for ₤250,000 to be paid in 180 days. The current exchange rate is $1.98/₤. The exporter hedges its exchange rate risk by buying a put option on ₤250,000 with the strike exchange rate of $1.92/₤. The put expiring in 180 days cost the firm $5,000. What is the dollar amount the American firm will net on this transaction if the exchange rate is $1.96/₤ in 180 days?

A) $495,000
B) $490,000
C) $485,000
D) $480,000
E) $475,000