Now is September. Sophie will buy 20,000 bushels of corns in December. In September, the December corn futures are selling for $4 per bushel. To hedges her corn price risk, she buys 20,000 bushels of December corn futures. Given a negative sign represents a cash outflow, which of the following is CORRECT if the corn price goes up to $4.20 per bushel in December?

Group of answer choices

Sophie's total payoff from both the spot market and future market in December is $80,000.

Sophie's payoff in the future market in December is $4,000.

Sophie's total payoff from both the spot market and futures market in December equals future price times 20,000 bushels.

Sophie's total payoff from both the spot market and future market in December depends on the spot price.