A French company will receive $500,000 at the end of 4 months. To hedge its currency risk, the company buys an option allowing it to exchange dollars for euros at a rate of $1.1/. You are given: (i) The spot exchange rate is $1.08/. (ii) The volatility of the exchange rate between the two currencies is 0.1. (iii) The continuously compounded risk-free interest rate for dollars is 0.05. (iv) The continuously compounded risk-free interest rate for euros is 0.04. (v) The Black-Scholes framework is assumed to apply to the currency exchange rate. Calculate the cost in euros of the hedging. A French company will receive $500,000 at the end of 4 months. To hedge its currency risk, the company buys an option allowing it to exchange dollars for euros at a rate of $1.1/. You are given: (i) The spot exchange rate is $1.08/. (ii) The volatility of the exchange rate between the two currencies is 0.1. (iii) The continuously compounded risk-free interest rate for dollars is 0.05. (iv) The continuously compounded risk-free interest rate for euros is 0.04. (v) The Black-Scholes framework is assumed to apply to the currency exchange rate. Calculate the cost in euros of the hedging