On December 1, 20x7, SM Company sold merchandise to a foreign entity for 150,000 foreign currency units. Payment is due on February 1, 20x8. SM entered into a forward exchange contract on December 1, 20x7 to deliver 100,000 FCUs on February 1, 20x8 for P0.75. SM chose to use a foreign currency option to hedge this foreign currency asset designated as a cash flow hedge. Relevant exchange rates follow: Date Spot rate Option premium December 1, 20x7 0.75 0.06 December 31, 20x7 0.73 0.04 February 1, 20x8 0.72 0.02 Compute the value of the foreign currency option at December 31, 20x7