Company X, which is a chemical manufacturer, uses crude oil and buys it in the spot market on a monthly schedule. A crude oil swap is quoted by the dealer at $25. Which of the following statements is correct?

A) The company should sell the swap to hedge

B) In a month when the spot price of oil is above $25, the company will pay the difference to the counter party

C) In a month when the spot price is below $25, the company will pay the difference to the counter party