KidCo Cereal Company Sells "Sugar Corns" for $2

Multiple Choice

KidCo Cereal Company sells "Sugar Corns" for $2.50 per box.The company will need to buy 20,000 bushels of corn in 6 months to produce 40,000 boxes of cereal.Non-corn costs total $60,000.What is the company's profit if they purchase call options at $0.12 per bushel with a strike price of $1.60? Assume the 6-month interest rate is 4.0% and the spot price in 6 months is $1.65 per bushel.

A) $6,504 profit
B) $8,005 loss
C) $12,064 profit
D) $11,293 loss