A UScompany That Imports Laptop Computers from Japan Knows That in in 30

Multiple Choice

A U.S.company that imports laptop computers from Japan knows that in 30 days it must pay yen to a Japanese supplier when a shipment arrives.The company will pay the Japanese supplier $\times$ 150,000 for each computer,and the current dollar/yen spot exchange rate is $1 = $\times$ 110.The importer knows she can sell the computers the day they arrive for $1,600 each.However,the importer will not have the funds to pay the Japanese supplier until the computers have been sold.The importer enters into a 30-day forward exchange transaction with a foreign exchange dealer at $1 = $\times$ 105.Which of the following will happen if the exchange rate after 30 days is $1 = $\times$ 90?

A) The importer will earn a profit of $236 per computer.
B) The importer will earn a profit of $171 per computer.
C) The importer will earn a profit of $65 per computer.
D) The importer will incur a loss of $67 per computer.