Brzoska Inc.'s German subsidiary has forecasted earnings next year of 10 million. Assume that the current one-year forward rate for euros is $1.33, the same as the current spot rate. Further assume that the euro depreciates over the year, so that the weighted average exchange rate is $1.30 over the year.

If Brzoska implements a forward hedge on the expected earnings by selling 10 million one year forward, what is the gain or loss on the forward contract?

a. $170,000 gain

b. $300,000 gain

c. $170,000 loss

d. $300,000 loss