Assume that Smith Corporation will need to purchase 200,000 British pounds in 90 days. A call option exists on British pounds with an exercise price of $1.68, a 90-day expiration date, and a premium of $.04.

A put option exists on British pounds, with an exercise price of $1.69, a 90-day expiration date, and a premium of $.02. Determine the amount of dollars it will pay for the payables, including the amount paid for the option premium.