Lanvert SA is a French company which trades frequently with Switzerland and the USA. It has a net payment in 3 months time of $2.8 million to make.

Euro market traded option prices (62,500 euro contract size) in the USA. (The options relate to the purchase or sale of euros.)

Option premia are in cents per euro and are payable up front. The options are American style. Assume that it is now 1 June and that option contracts mature on the 15th of the month. The spot rate is €1.0661 to the dollar.

What will be the cost, expressed to the nearest euro, of the premium to obtain 48 contracts to hedge the transaction at a rate of $0.938/euro?