UCD (U.S. based MNC) will receive 450,000 euros in one year. The spot exchange rate today is $1.1600 per euro. It observes that 1. The one-year interest rate for euros is 5%, and the one-year interest rate for U.S. dollars is 2%. 2. In the option market, there is one-year call option or put option available. Both options have the same exercise price of $1.1550 per euro, and a premium of $0.025 per euro. 3. In the forward market, the one-year forward rate exhibits a 4% discount from the current spot exchange rate. UCD uses forward contract to hedge 450,000 euro receivable. Suppose one year later, the euro spot exchange rate is $1.1200. What is UCD's real cost of hedging? $46,656. $18,000. -$2,880. $1,395