a) profit $130000

b) loss $130000

c) loss $10000

d) profit $10000

On January 1. Madison Co. ordered raw material from Jagan and agreed to pay 100 million yon for this ordor on April 1. It negotiated a 3-mionth forward oontract to obtain 100 million Japanese yen on that date at $0.011. On February 1 , the Japanese firm informed Madisori Co, that it wouldn't be able to fulfil the order. The Japanese yen spot fate on Februnry 1 is $0.01, and the 2 -month fonward rate exhibits a 3 percent diacount. Madison Co. will construct another forward contract to offset its oxisting contract. From this transaction, Madison Co. will have the (profit or loss) of \$ U.S. dollars. a.Profis 513000