On October 1, 2021, Eagle Company forecasts the purchase of inventory from a British supplier on February 1, 2022, at a price of 100,000 British pounds. On October 1, 2021, 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, 2021, the option has a fair value of $1,600. The following spot exchange rates apply: Date Spot Rate October 1, 2021 $2.00 December 31, 2021 $1.97 February 1, 2022 $2.01 What journal entry should Eagle prepare on December 31, 2021? Credit Event A) General Journal Foreign Currency Option Cash Debit 200 200 B) 200 Foreign Currency Option Option Revenue 200 C) 400 Foreign Currency Option Option Revenue 400 D) 200 Option Expense Foreign Currency Option 200 E) 400 Option Expense Foreign Currency Option 400