On August 1st of the Current Year, Lenz Company Writes

Multiple Choice

On August 1st of the current year, Lenz Company writes a contract agreeing to sell to Hindman Company 15,000 British pounds at a specific price of $0.69 per pound with delivery in 60 days.Throughout the 60-day period the forward rate varies as follows: ?

$\begin{array}{ll}60 \text { days remaining on the contract } & \$ 0.69 \\30 \text { days remaining on the contract } & \$ 0.68 \\0 \text { days remaining on the contract } & \$ 0.675\end{array}$ The spot rate at the end of 60 days is $0.675.Assume an 8% discount rate for both Lenz Company and Hindman Company.For the second thirty day period, Hindman would recognize a:

A) -$225 loss.
B) -$225 gain.
C) -$76 loss.
D) -$76 gain