Apple Inc. is a U.S.-based company, that designs, manufactures, and markets mobile communication and media devices, and personal computers. It also sells various related software, services, accessories, and third-party digital content and applications. The company offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as iOS, macOS, watchOS, and tvOS operating systems. On August 30, Apple sold inventory to Yara International, a Norwegian company. The inventory was priced at NOK 46.65 million and due in 180 days. Apples multinational finance team collected the following currency and market quotes. Apple forecasts the Norwegian Krone (NOK) will be at about $0.1125/NOK in 180 days.

Current spot rate ($/NOK)	$0.1095
180-day forward rate ($/NOK)	$0.1105
Apples WACC	4.500%
180-day dollar interest rate	2.000%
180-day krone interest rate	1.250%
180-day dollar borrowing rate	4.000%
180-day krone borrowing rate	3.000%

If Apple uses a naked hedge (or position), what would be the foreign exchange transaction gain or loss if its forecast is realized? (round to the nearest dollar)

Group of answer choices

$0

$46,650 loss

$139,950 gain

$93,300 gain

$46,650 gain