On September 3, 2017, Robin Franchises, a U.S. company, sold merchandise to a franchisee in the U.K.,

Question:

On September 3, 2017, Robin Franchises, a U.S. company, sold merchandise to a franchisee in the U.K., at a price of £8,000,000, payable in three months in pounds. To hedge its exposed asset position, on September 3, 2017, Robin entered a forward contract for delivery of £8,000,000 to the broker on December 3, 2017. On December 3, 2017, Robin received payment from the franchisee, and delivered the pounds to the broker to close the forward contract. Robin’s accounting year ends December 31. Exchange rates ($$/£)$ are as follows:

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