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Assume that Lewis International sells running shoes to a British importer on June 1 and the sale is denominated at £75,000 and will be collected on July 15th. At the same time, Lewis International entered into a forward contract to hedge the receivable. Assume the following exchange rates:

Spot rate on June 1 $1.6200
Forward rate for July 15 delivery $1.6000
Spot rate on June 30 $1.6100
Spot rate on July 15 $1.5950

What is the amount of cash that Lewis will receive for the sale?

a. $120,750

b. $120,000

c. $119,625

d. $121,500

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