On November 1, 2015, a U.S. company sold merchandise to a foreign firm for 60,000 FCs with payment to be made on January 31, 2016, in FCs. To hedge against fluctuations in exchange rates, the firm entered into a forward exchange contract on December 1, 2015 to sell 60,000 FCs on January 31, 2016. The U.S. firm has a December 31 year end for accounting purposes. The discount rate is 10%. The following exchange rates may apply:

Date Spot Rate Fwd Rate

11/1/15 $0.15

12/1/15 $0.155 $0.17

12/31/15 $0.16 $0.175

1/31/16 $0.165 $0.165

The U. S. company would record a gain (loss) on the forward contract in 2016 of a. ($300.00) b. $300.00 c. $597.50 d. $600.00