Hedging: Kapona Industries Has Purchased Equipment from a Korean Company

Hedging: Kapona Industries has purchased equipment from a Korean company for a total cost of 11,500,000 Korean won. The company has to pay in 90 days. J. P. Morgan has given the company a 90-day forward quote of $0.0009791/won. Assume that on the day the payment is due, the spot rate is at $0.001004/ won. How much would Kapona save by hedging with a forward contract? Round to the nearest dollar.

A) $687
B) $338
C) $152
D) $286