Use the Following Information to Answer Bellow Questions

Multiple Choice

Use the following information to answer bellow questions
On January 1, a company holds an inventory of a commodity carried at a cost of $100,000. The commodity's current market value is $110,000. To guard against a potential decline in the value of that inventory, the company purchases put options with a total strike price of $110,000 exercisable in 3 months, paying a total of $500 for the options. The puts qualify as a fair value hedge of the inventory. All income effects of the inventory and the hedge are reported in cost of goods sold. On March 25, the commodity's market price is $108,000 and the company closes the hedge by selling the put options for $2,200. The company sells its inventory later in the year. The company has a December 31 year-end.
-What is total cost of goods sold for the year?

A) $100,000
B) $ 96,300
C) $ 98,300
D) $ 98,000