An Indian company is importing machine at a price of $ 5,00,000, payable after six month. The current exchange rate is Rs. 63 US $. The forward contract for six months is available @ Rs. 64 per US $. If the rate turns out to be Rs. 64.25 per US $, the net gain to the importer in case he has entered into contract will be
A. $ 1,25,000
B. $ 2,50,000
C. $ 5,00,000
D. $ 6,25,000
Answer: Option A
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