The correct answer is: 237.1 and let the option lapse.

The option premium makes foreign currency options quite expensive, and could therefore be unsuitable for any company trading on narrow profit margins. Options are often used by companies faced with (1) a currency exposure that might not arise at all or (2) where the amount of the total receipt or payment is uncertain.

Option premium = 240 × 1.2% = 2.88 yen

Worst case = 240 – 2.88 = 237.12 yen

If the spot rate in 6 months time is 245, the company will allow the option to lapse, and buy yen at the spot rate; its all-in cost would be 245–2.88 option premium = 242.12 yen to $1.