GE also has a loan payment in the amount of 2,000,000 due in 6-months to a French bank. They also wish against exchange rate risk in this transaction and the market rates are below: S0=$1.30/, F180-days=$1.28/, i$=2.00% for 6-months, i=2.50% for 6-months

What is the cost to GE if they conduct a forward hedge?

$2,560,000 $2,600,000 $2,760,000 $1,600,000