On 6/1/X2, an American Firm Sold Inventory Costing 100,000 Euro

Multiple Choice

On 6/1/X2, an American firm sold inventory costing 100,000 Euro from a Dutch firm with payment to be received on 8/1/X2. Also on 6/1/X2, the American firm acquired an option for $1,500 to sell 100,000 Euro on 8/1/X2. The strike price for the option was $1.21. 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) $700 loss
B) $1,000 loss
C) $6,000 loss
D) $4,300 loss