_____ on 11/10/06, Buymax Entered into a 60-Day FX Forward

Multiple Choice

_____ On 11/10/06, Buymax entered into a 60-day FX forward involving 100,000 British pounds to hedge a pound payable arising from an importing transaction. Direct exchange rates on the respective dates are as follows:
What is the FX gain or loss to be reported in earnings for 2006 on the FX forward?

A) $ -0-
B) $3,000 gain.
C) $3,000 loss.
D) $5,000 gain.
E) $5,000 loss.