An Indian company is importing machine at a price of 5...

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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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