The treasurer of a U.K. company purchases Australian dollar with 3 million pounds to hedge an Australian goods purchase. Directly after, he is told that they no longer need to purchase the goods. He then sells the Australian dollar back for pounds. Assume the bid rate is AUD 1.5000/ and the ask rate is AUD 1.5008/, how much will the treasurer lose or gain approximately?

Select one:

a.

gain 1,600

b.

gain $1,600

c.

lose 1,600

d.

lose $1,600

Please answer as soon as possible