You Are a Financial Manager with JCN,Co

You are a financial manager with JCN,Co.and you have used a forward contract to hedge a yen 100,000,000 payment the company expects to receive in 90 days.Your contract calls for you to deliver yen at 109.75 yen per U.S.dollar.Suppose the spot rate at that time is 111.25 yen per U.S.dollar.Did you gain or lose on the hedge? How much?

A) Gain, $66,666.67
B) Loss, $66,666.67
C) Gain, $12,285.33
D) Loss, $12,285.33