Assuming a Forward Contract Was Entered into on December 16

Multiple Choice

Assuming a forward contract was entered into on December 16, what would be the net impact on Car Corp.'s 2018 income statement related to this transaction? Assume an annual interest rate of 12% and a fair value hedge.The present value for one half-month at 12% is .9950.

A) $ 700 (gain) .
B) $ 700 (loss) .
C) $ 995 (gain) .
D) $ 300 (loss) .
E) $ 298 (gain) .