Currency forward

Macklin Metals has received 80 million pounds sterling. The company plans to spend $120 million on a project in the United States in 90 days. Macklin inters into a cash settlement currency forward to exchange the pounds for U.S. dollars at a rate of $1.50 per pound in 90 days. If the exchange rate is $1.61 per pound at the settlement date, the cash settlement Macklin will pay or receive is closest to: A) $5.5 million payment. B) $5.5 million receipt. C) $8.8 million payment. D) $8.8 million receipt. Your answer: D was incorrect. The correct answer was C) $8.8 million payment. Can someone help me out with why the company makes a payment instead of receiving one? Thanks

They get the 1.50 USD per pound, but on the open market the exchange rate is 1.61 USD per pound. They get less money than they could in the market, and hence lose money on the contract

ok thanks