What was the overall result of having entered into this hedge of exposure to foreign exchange risk?
A) $0
B) $9,000 net loss on the option.
C) $9,000 net gain on the option.
D) $2,000 net gain on the option.
E) $2,000 net loss.

Question

Quizplus · Accepted Answer

The overall result of entering into the hedge was a net gain of $9,000 on the option. This offset the loss incurred due to the decrease in the exchange rate, resulting in a zero net effect.

What Was the Overall Result of Having Entered into This