Golden Pty Ltd. is a local car manufacturer and an exporter in Australia. Golden just signed a sale agreement to sell vehicles to a German car importer--Denz. Denz will be billed EUR 1,000,000, payable in six months. The current spot exchange rate is AUD1.61/EUR. However, a senior manager in Golden worries that the future foreign exchange rate may fluctuate and hurt the profit. Therefore, the manager asks you, a financial risk analyst, to provide him with an appropriate hedging technique.

The following are information in the currency derivative market:

• 6-month EUR forward contract with a strike price of AUD1.58/EUR
• 6-month EUR call option with an exercise price of AUD1.57/EUR (premium is AUD0.05/EUR)
• 6-month EUR put option with an exercise price of AUD1.56/EUR (premium is AUD0.04/EUR)
• Interest rate in Australia is 3% p.a.
• Interest rate in Germany is 4% p.a.

If you decide to hedge through options contract, what is the cost of premium in dollar today?