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What was the net impact on darell income

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Question - On April 4, 2020, Darell beauty products delivered to a Pakistan firm inventory it sold for 100,000 rupees. Payment is due to be received on August 2, 2020. The company's fiscal year ends June 20. Also on April 4, Darell beauty products entered into a foreign exchange forward to sell 100,000 rupees on August 2, 2020. Spot rate (rupee) -P.80(4/4/2020), P.84(6/30/2020), P.82(8/2/2020). Forward rate (rupee) -P.77(4/4/2020), P.83(6/30/2020), P.82(8/2/2020). What was the net impact on Darell's income in 2020 as a result of this hedge?

a. Zero

b. P2,000 increase

c. P2,000 decrease

d. P3,000 increase

Reference no: EM133012355

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