Question 17 6.4285 points Save Answer J.K. Company sold equipment to a Canadian company for 200,000 Canadian dollars (CS) on January 1, 20x9 with settlement to be in 60 days. On the same date, J.K. entered into a 60-day forward contract to sell 200,000 Canadian dollars at a forward rate of 1 C$ $.94 in order to manage its exposed foreign currency receivable. The forward contract is not designated as a hedge. The spot rates were: January 11 C$ - $0.945 March 11 C$ = 0.930 Based on the preceding information, what is the overall effect on net income of J.K.'s use of the forward exchange contract? Net loss of $2,000 Net gain of $3,000 Net loss of $1,000 No effect