On December 1, 2020, Nikki Corporation (a U.S.based company) sold goods to a foreign customer at a price of 1,040,000 pesos and will receive payment in three months on March 1, 2021. On December 1, Nikki acquired an option to sell 1,040,000 pesos in three months at a strike price of $0.066. Relevant exchange rates and option premia for the peso are as follows:

Date	Spot Rate	Put Option Premium for March 1, 2021 (strike price $0.066)
Dec 1, 2020	$0.066	$0.0029
Dec 21, 2020	$0.065	$0.0024
March 1, 2021	$0.064	N/A

The intrinsic value of the foreign currency option on December 31 , 2020 would be:

Choices:

$2,080

$2,420

$1,040

$1,540

On De 1 commods to a forgalome of 1,040.000 pesos and will receive payment in three months on March 1, 2021 On December 1, Nikkaned an option to sell 50 pcs 0.06Delever the phon prema for the persone in fotows Pulon Premio Mach 1.2001 D Sport Cutekete) December2030 VA 009 December 11,00 06 00024 The Whitener 1.2000 would be MAX NA 20 OVA OS 5150