Jason Stedman is the director of finance for BurtonManufacturing, aU.S.-based manufacturer of handheld computer systems for inventory management.Burton's system combines alow-cost active tag that is attached to inventory items(the tag emits an extremelylow-grade radiofrequency) with custom designed hardware and software that tracks thelow-grade emissions for inventory control. Burton has completed the sale of an inventory management system to a Britishfirm, Pegg Metropolitan(UK), for a total payment of 1,100,000. The exchange rates shown in the popupwindow, LOADING...

, were available to Burton on the datesshown, corresponding to the events of this specific export sale. Assume each month is 30 days.

Date Event Spot Rate ($/) Forward Rate ($/) Days Forward

February 1 Price quotation for Pegg 1.7839 1.7765 210

March 1 Contract signed for sale 1.7305 1.7229 180

Contractamount, pounds 1,100,000

June 1 Product shipped to Pegg 1.7655 1.7567 90

August 1 Product received by Pegg 1.7939 1.7918 30

September 1 Pegg makes payment 1.7175 - -

a. What will be the amount of foreign exchange gain(loss) uponsettlement?

b. If Jason hedges the exposure with a forwardcontract, what will be the net foreign exchange gain(loss) onsettlement?

C. if Jason hedges the exposure with a forward contract purchased on the date the contract is signed, what

will be the net foreign exchange gain (loss) on settlement? Enter a positive number for a gain or a

negative number for a loss