Car Corp. (a U.S.-based company) sold parts to a Korean customer on December 16, 2011, with payment of 10 million Korean won to be received on January 15, 2012. The following exchange rates applied :

Date : December 16th, 2011 Spot Rate : $0.00092 Forward Rate to January 15th : $0.00098

Date : December 31st, 2011 Spot Rate : $0.00090 Forward Rate to January 15th : $0.00093

Date : January 15th, 2012 : Spot Rate : $0.00095 Forward Rate to January 15th : $0.00095

Question :

Assuming a forward contract was entered into, the foreign currency was originally sold in the foreign currency market on December 16, 2011 at a A. forward contract discount $600. B. forward contract premium $600. C. forward contract discount $980. D. forward discount premium $980. E. There is no premium or discount because the fair value of the contract is zero.

I need help with steps as to how and why answer was B) and detailed calculation explanations. Be ready for follow up questions on your work.