A Company Will Buy 1000 Units of a Certain Commodity

Multiple Choice

A company will buy 1000 units of a certain commodity in one year.It decides to hedge 80% of its exposure using futures contracts.Spot price and futures price are currently $100 and $90.The one year futures price of the commodity is $90.If the spot price and the futures price in one year turn out to be $112 and $110 respectively,what is the average price paid for the commodity?

A) $92
B) $96
C) $102
D) $106