On October $1,2024,$ Eagle Company forecasts the purchase of inventory from a British supplier on February $1,2025,$ at a price of $100,000$ British pounds. On October $1,2024,$ Eagle pays $$1,800$ for a three$-$month call option on $100,000$ pounds with a strike price of $$2\mathrm{.}00$ per pound. The option is considered to be a cash flow hedge of a forecasted foreign currency transaction. On December $31,2024,$ the option has a fair value of $$1,600.$ The following spot exchange rates apply:

DateSpot RateOctober $1,2024$$ $2\mathrm{.}00$December $31,2024$$ $1\mathrm{.}97$February $1,2025$$ $2\mathrm{.}01$

What is the balance in the Foreign Currency Option account on December $31,2024?$

Multiple Choice

$$0$

$$1,000$

$$1,600$

$$1,800$

$$2,400$