Assume that our company has an inventory of aluminum alloy that it will sell to a customer in 90 days and that you face the following market prices.

	Spot Price	90 Day Futures Price
Today	$3.10	$3.07
90 days later	$3.09

If we purchase a futures contract today,

Select one:

A. we will lock in a $0.02 gain.

B. we will lock in a $0.03 gain.

C. we will lock in a $0.01 loss.

D. we will lock in a $0.03 loss.