_____ on 10/22/06, Selmax Entered into a 90-Day FX Forward

Multiple Choice

_____ On 10/22/06, Selmax entered into a 90-day FX forward involving 100,000 euros to hedge a euro receivable arising from an exporting 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) $500 gain.
B) $1,000 gain.
C) $1,000 loss.
D) $2,000 gain.
E) $2,000 loss.