ABC Electrical Manufacturing Ltd needs to buy 100,000 pounds of copper in January 2024 for the production of electrical cables. It is considering copper futures and options to hedge the price risk of copper due to high demand for copper from the construction and building industry in the coming months. Information about futures and call option contracts for copper is provided by the bank as follows: Jan 2024 Futures at price $3.80 per pound Jan 2024 Call option at strike price $3.80 per pound with premium $0.15 per pound Each futures or call option contract is for 25,000 pounds. Required: a How many futures or call option contracts need to be bought? (2 marks) b What will be the final cost to the firm under futures and call option contracts if the price of copper at expiration is: i \$3.60 per pound; or (8 marks) ii $4.10 per pound? (9 marks) Discuss the pros and cons of buying futures and options under (a) and (b) above. (6 marks)