On October 1, 2021, Eagle Company forecasts the purchase of inventory from a British supplier on February 1, 2022, at a price of 100,000 British pounds. On October 1, 2021, Eagle pays $1,800 for a three-month call option on 100,000 pounds with a strike price of $2.00 per pound. The option is considered to be a cash flow hedge of a forecasted foreign currency transaction. On December 31, 2021, the option has a fair value of $1,600. The following spot exchange rates apply: 
What journal entry should Eagle prepare on October 1, 2021?
Definitions:
Active Interest
A keen and enthusiastic attention or involvement in a particular activity or subject.
Patient
A person who is under or has signed up for medical care.
Patient Education
The process of providing patients with information and support regarding their health condition and its management.
Comprehend Instructions
The ability to understand and follow directions or commands given by others, crucial for completing tasks accurately and efficiently.
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