On November $3,$ the spot price for cotton was $$0\mathrm{.}78/$lb$.,$ and futures price for February delivery was $$0\mathrm{.}82/$lb$.$ On November $3,$ Levi Strauss bought $200$ futures contracts on the commodity exchange at $$0\mathrm{.}82/$lb$.$ for acceptance in February. Each contract was for $25,000$ lb$.$ Levi Strauss designated these contracts as a fair value hedge of $5,000,000$ lb$.$ of current inventory which it expected to sell in February. The average spot of this inventory when purchased was $$0\mathrm{.}70/$lb$.$ Levi Strauss properly documented the hedge and employed fair value hedge accounting. On November $30,$ the company$$s fiscal year end, the February commodity exchange futures price was $$0\mathrm{.}87/$lb$.$

If$,$ on November $30,$ Levi Strauss concluded that the hedge was $100\%$ effective, it should record the hedged cotton inventory in the November $30$ balance sheet at

Select one:

a$.$ $$5,237,500$

b$.$ $$5,137,500$

c$.$ $$4,100,000$

d$.$ $$3,250,000$