_____ on 1/1/06, Optux Purchased a 1-Year At-The-Money FX Put

Multiple Choice

_____ On 1/1/06, Optux purchased a 1-year at-the-money FX put option from an FX trader involving 2,000,000 Australian dollars at a cost of $6,000. The exercise price was $.65. The option was obtained to hedge a potential loss of export sales to Australia in the event that the U.S. dollar strengthened.
For the first half of 2006, Optux's export sales to Australia were 600,000 Australian dollars lower as a result of the U.S. dollar strengthening. For the last six months of 2006, export sales to Australia are expected to be 400,000 Australian dollars lower as a result of anticipated continued strengthening of the U.S. dollar.
At 6/30/06, the direct spot rate was $.70 and the option's market value was $106,000. What amount is reported in Other Comprehensive Income at 6/30/06?

A) $ -0-
B) $40,000
C) $50,000
D) $60,000
E) $100,000