Gates Auto Inc

Gates Auto Inc. manufactures automobile engines in the United States. Gates Auto Inc. sells 200 of its 8 - cylinder Hoste model engines to a company in Canada. The total price for these engines is C$60,000. Gates Auto Inc. will deliver the engines today and receive payment in 3 months from the Canadian company. When payment is received Gates Auto will convert the C$60,000 into U.S. dollars. The spot rate is $0.7865/C$ and if the spot rate in 3 months is $0.7622/C$, how much will Gates Auto Inc. gain or lose due to exchange rate movements on this transaction if it does not perform any hedges.

A) They will lose $1,458.29
B) They will gain $1,458.29
C) They will not gain or lose anything on this transaction.
D) They will gain $31,530