4.As part of its risk management strategy, a copper mining company sells futures contracts to hedge changes in fair value of its inventory.On March 12, the commodity exchange spot price is P0.81/lb.; the futures price for mid-June is P0.83/lb.On that date, the company, a calendar year-end firm, sells 200 futures contracts on the commodity exchange at P0.83/lb. for delivery in June.Each contract is for 25,000 lbs.The company designates these contracts as a fair-value hedge of 5 million lbs. of current inventory for which a mid-June sale is expected.The average cost of this inventory is P0.58/lb.The company appropriately documented the hedging.On March 31, the mid-June commodity exchange futures price is P0.85/lb.In the March 31 statement of financial position, the company should record the value of the futures contracts as a(n)

a.P100,000 assetc.P4,250,000 liability

b.P100,000 liabilityd.P4,250,000 asset