Scholatic Books, a U.S. firm, sells merchandise today to a British company for 100,000. The current exchange rate is $2.03/, the account is payable in three months, and the firm chooses to hedge by purchasing a 100,000 put option which gives Scholastic Books the right to sell the 100,000 accounts receivable in 90 days (options hedge). Assume the option strike price is $2.01/ , and the option premium is $0.020//. This means that the cost of the option is $4,020 and the FV of the cost of the option in 90 days is $4100.40.

Assume the exchange rate in 90 days is $1.99/, and Scholastic Books exercises the option. What is Scholastic Book's net proceeds?