An American Firm Has Just Bought Merchandise from a British

An American firm has just bought merchandise from a British firm for £50,000 on terms of 90-day payment.This firm has purchased a 3-month call option on 50,000 pounds at a strike price of $1.7 per pound and a premium cost of $0.02 per pound.On the day the option matures,the spot exchange rate is $1.8 per pound.What will be the cost of the option in U.S.dollars?

A) $1000
B) $10
C) $85,000
D) $5,000