. On October 1, 2011, Eagle Company forecasts the purchase of inventory from a British supplier on February 1, 2012, at a price of 100,000 British pounds. On October 1, 2011, Eagle pays $1,800 for a three- month call option on 100,000 pounds with a strike price of $2.00 per pound. The option is considered to be a cash flow hedge of a forecasted foreign currency transaction. On December 31, 2011, the option has a fair value of $1,600. The following spot exchange rates apply: Spot Rate $2.00 Date October 1, 2011 $1.97 December 31, 2011 $2.01 February 1, 2012 What is the amount of Cost of Goods Sold for 2012 as a result of these transactions? A. $200,000. B. $195,000. C. $201,000. D. $202,600. E. $203,000