Kogan, an Australian online retailer, has an liability of 1,500,000 EUR payable in one year to a bank in Germany. The current spot rate is 2.1205 AUD/EUR and the one year forward rate is 2.1185 AUD/EUR. The annual interest rate is 4% in Germany and 3.5% in Australia. The company can also use options on EUR at the strike price of 2.1200 AUD/EUR for a premium of 0.05 AUD/EUR. Suppose the future exchange rate is 2.1225 AUD/EUR. The AUD outcome of using the money market hedge for this transaction is

Select one:

a. $3,165,457.93

b. none of the options

c. $3,058,413.46

d. $3,177,750.00

e. $3,180,750.00