You are the Vice President of Finance for Exploratory Resources, headquartered in Houston, Texas. In January 20X1, your firms Canadian subsidiary obtained a six-month loan of 120,000 Canadian dollars from a bank in Houston to finance the acquisition of a titanium mine in Quebec province. The loan will also be repaid in Canadian dollars. At the time of the loan, the spot exchange rate was U.S. $0.9015/Canadian dollar and the Canadian currency was selling at a discount in the forward market. The June 20X1 contract (face value = C$120,000 per contract) was quoted at U.S. $0.8970/Canadian dollar.

If the bank does hedge with the forward contract, what is the maximum amount it can lose?

Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.