DEC Hedges a FF 3

Multiple Choice

DEC hedges a FF 3.2 million receivable due in 180 days. The current spot rate is FF 1 = $0.18834 and the 180?day forward rate is FF 1 = $0.18625. If the spot rate at the end of 180 days is $0.18728, how much has the forward market hedge cost DEC?

A) $6,688
B) $3,392
C) $3,296
D) DEC gains $6,688 on the hedge