DEF(French firm)will receive C$900,000from one of its Canadian customers in three months.DEF decides to use put options to fully hedge its Canadian dollar receipt.Three month put options have100,000Canadian dollars attached.The options have an exercise price of1.03euros and a premium of.02euros.Find DEF's profit/loss(in terms of euros)on theirputoptionpositionif the exchange rate is.95 eurosper Canadian dollar at expiration.

54,000

-54,000

6,000

-6,000