_____ on 1/1/06, Callex Purchased a 1-Year At-The-Money FX Call

_____ On 1/1/06, Callex purchased a 1-year at-the-money FX call option from an FX trader involving 2,000,000 French euros at a cost of $16,000. The exercise price was $.25. The option was obtained to hedge Callex's budgeted 2006 import purchases from French vendors. Actual purchases from French vendors for the first three months of 2006 were 500,000 euros. At 3/31/06, the direct spot rate was $.292 and the option's market value was $96,000. What amount is reported in Other Comprehensive Income at 3/31/06 assuming that Callex has resold 50% of the inventory received in the first quarter?

A) $ -0-
B) $20,000
C) $60,000
D) $70,000
E) $80,000