On November 1, 2019, Casio Company, a U.S. firm, purchased merchandise from Seiko Company of Germany for 100,000 euros. Payment is due on February 1, 2020. Casio purchased a foreign currency call option with a strike price of $1.10 (U.S.) on November 1, 2019. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow:

Date	Spot Rate	Option Premium
Nov. 1, 2019	$1.09	$0.08
Dec. 31, 2019	$1.13	$0.05
Feb. 1, 2020	$1.11	N/A

What would be the impact of this transaction on Casio's income statement in 2020?

Group of answer choices

$2,000 decrease

$4,000 decrease

5,000 decrease

$4,000 increase

$2,000 increase