Spot Rate	Forward Rate for August 16, 2024 Delivery
May 16, 2024	$1.380	$1.375
June 30, 2024	1.390	1.388
August 16, 2024	1.400	1.400

On May 16, 2024, a U.S. company takes delivery of 100,000 in merchandise from a U.K. supplier. The company will pay the supplier 100,000 on August 16. On May 16, the company also enters a forward contract to buy 100,000 on August 16, 2024. On August 16, the company purchases 100,000 using the forward contract, and pays the supplier. The companys accounting year ends June 30, and it sells the merchandise in September 2024. How much in U.S. dollars does the U.S. company pay for the 100,000 on August 16, 2024?

Select one:

a. $100,000

b. $140,000

c. $138,000

d. $137,500

NOTE: please show all work so I may better understand the process of solving the problem. thanks!