#2 Maria Gonzalez is the chief financial officer of Ganado. She has just concluded negotiations for the sale of a turbine generator to Regency, a British firm, for 1,000,000. The sale is made in March with payment due three months later in June. Maria could cover her 1,000,000 exposure by purchasing a put option. Maria could purchase from her bank a 3-month put option on 1,000,000 at an at-the-money (ATM) strike price of $1.78/ with a premium cost of 1.40%. The spot rate is $1.7640/. What is the total cost of option?