Assume You Manage a Firm That Faces Transaction Exposure

Assume you manage a firm that faces transaction exposure.Your company manufactures and sells automobile parts around the world.You have just completed a large sale of parts to an auto manufacturer in France and received a promised payment of €172 per part.You have already sold 17,000 parts and are now awaiting payment which you expect 90 days from today.The exchange rate today is $1.25/€.Over the next ninety days,the direct exchange rate unexpectedly moves from $1.25/€ to $1.30/€.What is the gain in domestic revenue due to this unexpected move in the exchange rate?

A) $106,000
B) $114,900
C) $118,500
D) $146,200