6.ABC Company, a British company, expects to receive $10,000,000 in 30 days. It wants to hedge its foreign currency risk in the forward market. The forward price of the pound contract is 0.74...

6.ABC Company, a British company, expects to receive $10,000,000 in 30 days. It wants to hedge its foreign currency risk in the forward market. The forward price of the pound contract is 0.74 pounds/$.  If the exchange rate at forward contract settlement is 0.71 pounds/$, ABC’s payoff on the forward contract is closest to:

A. -300,000 pounds

B. 300,000 pounds

C. Zero