A company will sell 1000 units of a certain commodity in one year. It decides to hedge 60% of its exposure using futures contracts. Spot price and futures price are currently $100 and $98. The one year futures price of the commodity is $98. If the spot price and the futures price in one year turn out to be $92 and $93respectively, what is the average price paid for the commodity?

Group of answer choices

a. $89

b. $97

c. $87

d. $95