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, at what amount should the forward contract be recorded at December 31, 2011? Assume an annual interest rate of 12% and a fair value hedge. The present value for one month at 12% is .9901. A. $200. B. $295. C. $495. D. $500. E. $9,300.

I need detailed help with steps and calculations as to why answer was C