Lehigh Valley Transit Inc. (LVT) has signed a contract to purchase light rail cars from Alstom, a French rail car manufacturer, for 150,000,000. The purchase order was placed in November 2021 with payment due six months later in May 2022. The fact that this is a sizable contract for LVT and because the payable is denominated in euros, rather than dollars, LVT is considering several hedging alternatives to reduce the exchange rate risk arising from the sale. To help the firm make a hedging decision you have gathered the following information.

The spot exchange rate today is: $1.1500 per 1

The six month forward rate is: $1.1300 per 1

The Euro zone 6-month borrowing rate is 7% p.a. (or 3.5% for 6 months)

The Euro zone 6-month lending rate is 5% p.a. (or 2.5% for 6 months)

The U.S. 6-month borrowing rate is 6% p.a. (or 3% for 6 months)

The U.S. 6-month lending rate is 4% p.a. (or 2% for 6 months)

May 2022 call options for 150,000,000; strike price $1.1500, premium is 1.5%

LVT's forecast for the spot rate in 6 months is: $1.1200 per 1

The budget rate, or the highest acceptable purchase price for this project, is $186,000,000 or $1.2400 per 1

3) If LVT locks in the forward hedge at $1.1300 per euro, and the spot rate when the transaction was recorded on the books was $1.1500 per euro, this will result in a "foreign exchange accounting transaction gain or loss of how much?