Assume that Conner Co$.$ negotiated a forward contract to purchase $2,000,000$ British pounds in $60$ days. The $60$ day forward rate was $$1\mathrm{.}40$ per British pound. The pounds to be

purchased were to be used to purchase British supplies. On the day the pounds were delivered in accordance with the forward contract, the spot rate of the British pound was $$1\mathrm{.}42.$ What

was the real cost of hedging the payables for this U$.$S$.$ firm?

A$.2800000$

B$.2840000$

C$.40000$

D$.$ None of the choices is correct.

E$.-40000$