Murray Auto has agreed to buy cars for 1,000,000 from Germany. The total invoice is to be paid in 6 months when the cars are delivered. CrownJet of Ohio has agreed to sell a jet for 1,000,000 to a buyer in France. CrownJet will receive the payment in 6 months when the plane is delivered. Both companies are worried about the dollar/euro exchange rate. Murray and CrownJet enter into the forward contract expiring 6 months from now. The $/ spot exchange rate is 1.13. The forward rate is $1.11/. Murray Auto goes long. CrownJet goes short. The contract is cash settled. It is the expiry date. The spot exchange rate is $/ 1.17. On the expiry date:

Group of answer choices:

CrownJet pays Murray 40,000

Murray pays CrownJet 20,000

CrownJet pays Murray $60,000

Murray pays CrownJet $20,000

Murray pays CrownJet $60,000