Use the Following Information on the U On November 16, 2019, a U

Multiple Choice

Use the following information on the U.S. dollar value of the euro to answer bellow Questions
$$\begin{array} { | l | c | c | } \hline & \text { Spot Rate } & \begin{array} { c } \text { Forward Rate for } \\\text { March 16, 2020 Delivery }\end{array} \\\hline \text { November 16, 2019 } & \$ 1.250 & \$ 1.248 \\\hline \text { December 31, 2019 } & 1.260 & 1.255 \\\hline \text { March 16, 2020 } & 1.265 & 1.265 \\\hline\end{array}$$ On November 16, 2019, a U.S. company makes a sale to a customer in Germany. Under the sale terms, the customer will pay the company €100,000 on March 16. On November 16, the company also enters a forward contract to sell €100,000 on March 16, 2020. On March 16, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31.
-What is the net effect on 2019 income of exchange rate changes due to the sale and the forward contract?

A) no effect
B) $300 net loss
C) $300 net gain
D) $1,700 net gain