Celine CoWill Need €500,000 in 90 Days to Pay for German

Celine Co.will need €500,000 in 90 days to pay for German imports.Today's 90-day forward rate of the euro is $1.07.There is a 40 percent chance that the spot rate of the euro in 90 days will be $1.02,and a 60 percent chance that the spot rate of the euro in 90 days will be $1.09.Based on this information,the expected value of the real cost of hedging payables is $________.

A) -35,000
B) 25,000
C) -1,000
D) 1,000