ABC, located in the Florida, has an accounts payable obligation of 1.5 million payable in one year to the National Bank of Paris. The current spot rate is $1.05 per and the one year forward rate is $1.07 per . The annual interest rate is 1% in the Eurozone and the annual interest rate is 2% in the US. ABC can also buy a one-year call option on at a strike price of $1.05 per for a premium of $0.01 per . If ABC hedges this risk exposure using a forward hedge, what will this accounts payable cost ABC in one year?

a. $1.5906M

b. $1.6050M

c. $1.5903M

d. $1.4286M