A firm will buy 1,000 units of a certain commodity in one year. It decides to hedge 70% of its exposure using futures contracts. The spot price and the futures price are currently $100 and $90, respectively. The spot price and the futures price in one year turn out to be $112 and $110, respectively.

What is the average price paid for the commodity?

a. $92

b. $98

c. $102

d. $106

Thank you for your help!