Shandra Corporation $($a U$.$S$.-$based company$)$ expects to order goods from a foreign supplier at a price of $138,000$ pounds, with delivery and payment to be made on June $15.$ On April $15,$ when the spot rate is $$1\mathrm{.}49$ per pound, Shandra purchases a two$-$month call option on $138,000$ pounds and designates this option as a cash flow hedge of a forecasted foreign currency transaction. The time value of the option is excluded in assessing hedge effectiveness; the change in time value is recognized in net income over the life of the option. The option has a strike price of $$1\mathrm{.}49$ per pound and costs $$1,380.$ The goods are received and paid for on June $15.$ Shandra sells the imported goods in the local market immediately. The spot rate for pounds is $$1\mathrm{.}540$ on June $15.$