Consider a coal mine that sells brown coal. It seeks to hedge its brown coal sales using coking coal futures contracts. On initiating the nave futures hedge, the coking coal spot and futures prices are 52USD/tonne and 55USD/tonne respectively. The brown coal spot price is 65USD/tonne. On closing out the hedge 2 months later, the coking coal spot and futures prices are 38USD/tonne and 40USD/tonne respectively. The brown coal spot price is 67USD/tonne. Taking into account the profit/loss on the hedge, the price received is

1. 81USD/tonne
2. 57USD/tonne
3. 52USD/tonne
4. 53USD/tonne
5. None of these answers

Group of answer choices

C

B

A

E

D