A U.S. exporter has a Thai baht account receivable resulting from an export sale on April 1 to a customer in Thailand. The exporter signed a forward contract on April 1 to sell Thai baht and designated it as a cash flow hedge of a recognized Thai baht receivable. The spot rate was $0.022 on that date, and the forward rate was $0.023. Which of the following did the U.S. exporter report in net income?

a. Discount expense.

b. Discount revenue.

c. Premium expense.

d. Premium revenue.