Page Ltd$.$ is a Canadian retailer specializing in importing high$-$quality fashions from Milan, Italy. On November $15,2024,$ Page ordered merchandise from a Milan fashion house for $2,000,000($Euros$).$ The merchandise was received on January $15,2025,$ payable within $60$ days of receipt. Page paid for this merchandise on March $14,2025.$

On November $15,2024,$ in order to reduce the foreign exchange risk associated with the order, Page entered into a forward exchange contract to receive $2,000,000$ on March $14,2025.$ Page has chosen not to apply hedge accounting. Page has a December $31$ year end. Page uses the gross method to record the forward contract transactions and all necessary journal entries have been made up to the settlement date.

The relevant exchange spot rates and forward rates for contracts settling on March $14,2025,$ are:

Date Spot Rate Forward Rate$*$

November $15,20241=1\mathrm{.}3751\mathrm{.}412$

December $31,20241=1\mathrm{.}385$

January $15,20251=1\mathrm{.}3651\mathrm{.}430$

March $14,20251=1\mathrm{.}395$ n$/$a

$*$For contracts expiring on March $14,2025.$

Question:

Which of the following is correct as it relates to the Due From Broker $($Euros$)$ account?

Options:

$1.$ On March $14,2025,$ the Due from Broker $($Euros$)$ account will be debited for $$2,860,000$

$2.$ On March $14,2025,$ the Due from Broker $($Euros$)$ account will be debited for $$2,824,000$

$3.$ On March $14,2025,$ the Due from Broker $($Euros$)$ account will be credited for $$2,824,000$

$4.$ On March $14,2025,$ the Due from Broker $($Euros$)$ account will be credited for $$2,860,000$