Amazing Corporation, a U

Multiple Choice

Amazing Corporation, a U.S. enterprise, sold product to a customer in Wales on October 1, 20x1 for £100,000 with payment required on April 1, 20x2. Relevant exchange rates are: The discount factor corresponding to the company's incremental borrowing rate for 6 months is 0.95.
Assume that Amazing Corporation enters a forward contract on October 1, 2001 to sell £100,000 six months hence, on April 1, 2002. How should Amazing Corporation report the forward contract on its December 31, 2001 financial statements?

A) Asset $1,950
B) Liability $1,950
C) Asset $1,000
D) Asset $950