A USInsurance Firm Must Pay €75,000 in 6 Months

A U.S.insurance firm must pay €75,000 in 6 months.The spot exchange rate is $1.32 per euro and in 6 months the exchange rate is expected to be $1.35.The 6 month forward rate is currently $1.36 per euro.If the insurer's goal is to limit its risk should the insurer hedge this transaction? If so how?

A) The insurer need not hedge because the expected exchange rate move will be favorable.
B) The insurer should hedge by buying euro forward even though this will cost more than the expected cost of not hedging.
C) The insurer should hedge by selling euro forward because this will cost less than the expected cost of not hedging.
D) The insurer should hedge by buying euro forward even though this will cost less than the expected cost of not hedging.