2. On March 1st a commodity's spot price was $72 and its August futures price was $68. A company entered into futures contracts on March 1st to hedge its purchase of the commodity on July 1st using the August futures contract. It closes out its position on July 1st. What is the effective price (after taking account of hedging) paid by the company if on July 1st (i) the spot price is $75 and the August futures price is $72.30 and (ii) the spot price is $64 and the August futures price is $61.80? a. (0) $70.70 and (it) $67.80 b. () $72.30 and (ii) $67.80 C. (0) $72.30 and (i) $70.20 d. () $70.70 and (ii) $70.20 e. None of the above