On May 1, 2019, Meowth Co. anticipated the purchase of 245,000 units of merchandise from a foreign vendor. The purchase would probably occur on September 25, 2019 and require the payment of 4,375,000 foreign currencies (FC). On May 1, 2019, the company purchased a call option to buy 4,375,000 FC at a strike price of 1FC = P0.77. An option premium of P49,000 was paid. Changes in the value of the option will be excluded from the assessment of hedge effectiveness. For the year 2019, the following rates are as follows: May 1 May 31 June 30 September 25 Spot Rate P0.75 P0.79 P0.81 P0.82 FV of call option C . P103,250 P182,000 The gain (loss) on option contract that would affect/change (1) equity and (2) earnings on June 30