Use the Following Information to Answer Bellow Questions

Use the following information to answer bellow Questions.
A company bought debt securities, classified as available-for-sale, on August 1, 2020 for $105,000. On November 15, 2020, the market value of the securities is $100,000, and the company buys put options for $500, locking in the selling price of the securities at $100,000. The options qualify as a fair value hedge of the securities. All income effects of the securities and the hedge are reported in financial gains (losses) . At December 31, 2020, the reporting year-end, the market value of the securities is $98,000, and the options have a fair value of $2,600. On March 1, 2021, when the market value of the securities is $95,000, the company sells the options for $5,400, and also sells the securities.
-The securities declined in value by $7,000 in 2020. Where is this loss reported?

A) $7,000 loss in other comprehensive income
B) $5,000 loss in other comprehensive income and $2,000 loss in income
C) $5,000 loss in income and $2,000 loss in other comprehensive income
D) $7,000 loss in income