Palermo, Corp

Palermo, Corp. sold equipment to a French firm. Payment of €4,275,000 will be due in 90 days. Palermo has the option of selling the euros at a 90-day forward rate of $1.5922/€. If it waits 90 days to sell the euros, the expected spot rate is $1.5645/€. How much dollar revenue will Palermo lose by not selling forward the euros? (Round your final answer to the nearest dollar.)

A) $124,687
B) $118,418
C) $159,023
D) $131,278