Based on past experience, Maas Corporation $($a U$.$S$.-$based company$)$ expects to purchase raw materials from a foreign supplier at a cost of $1,100,000$ francs on March $15,2024.$ To hedge this forecasted transaction, on December $15,2023,$ the company acquires a call option to purchase $1,100,000$ francs in three months. Maas selects a strike price of $$0\mathrm{.}81$ per franc when the spot rate is $$0\mathrm{.}81$ and pays a premium of $$0\mathrm{.}002$ per franc. The spot rate increases to $$0\mathrm{.}817$ at December $31,2023,$ causing the fair value of the option to increase to $$9,000.$ By March $15,2024,$ when the raw materials are purchased, the spot rate has climbed to $$0\mathrm{.}83,$ resulting in a fair value for the option of $$22,000.$ The raw materials are used in assembling finished products, which are sold by December $31,2024,$ when Maas prepares its annual financial statements.