A US firm sells widgets today to a British company for 174000. The current spot rate is $1.56/, the account is payable in 3 months. Suppose the firm opts to avoid any hedging techniques designed to reduce or eliminate the risk of changes in the exchange rate. If the exchange rate changes to $1.582/ the US firm will realize a _____of ________.

a.

loss; $3828

b.

gain; 3828

c.

gain; $3828

d.

loss; 3828