A large dental lab plans to purchase 1,000 ounces of gold in 1 month. Assume again that gold prices can be $280, $300, or $320 an ounce. a. What will total expenses be if the firm purchases call options on 1,000 ounces of gold with an exercise price of $300 an ounce? The options cost $3 per ounce. b. What will total expenses be if the firm purchases call options on 1,000 ounces of gold with an exercise price of $295 an ounce? These options cost $7 per ounce.