Celine co. will need 500,000 in 90 days to pay for German imports. Todays 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 $_____.

-1,000, 25,000, -35,000, 1,000