At what amount is the investment in futures reported on Metallic Wonders’ December 31, 2017, balance sheet?

On December 1, 2017, Metallic Wonders Corporation has an inventory of metals carried at a cost of \($1,000,000.\) The company plans to sell the inventory in about 60 days, and wishes to guarantee the current 60-day futures price of \($1,400,000.\) On December 1, 2017, it takes a \($1,400,000\) short position in metal futures for delivery in 60 days. No margin deposit is required. The futures position is a qualified fair value hedge of the inventory, and the company elects to use hedge accounting. The company closes its futures position on January 31, 2018, and sells the metals on the spot market on February 5, 2018. The company’s accounting year ends December 31.
Spot and futures prices for the inventory are:

a.  \($90,000\) liability

b.  \($95,000\) asset

c.  \($95,000\) liability

d.  \($90,000\) asset

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December 1, 2017.. December 31, 2017. January 31, 2018. February 5, 2018 Futures price on Spot price January 31, 2018 $1,340,000 $1,400,000 1,245,000 1,310,000 1,200,000 1,200,000 1,290,000 N/A