On 6/1/X2, an American Firm Purchased Inventory Costing 100,000 Canadian

Multiple Choice

On 6/1/X2, an American firm purchased inventory costing 100,000 Canadian Dollars from a Canadian firm to be paid for on 8/1/X2. Also on 6/1/X2, the American firm acquired an option for $1,500 to purchase 100,000 Canadian dollars for delivery on 8/1/X2. The strike price for the option was $0.685. The exchange rates were as follows: The American firm's fiscal year end is June 30, 20X2. What is the net gain or loss recognized in the financial statements for the year ended June 30, 20X2?

A) $2,000 loss
B) $1,000 loss
C) $0
D) $1,000 gain