Petrochemical Parfum (PP) is concerned about a possible increase in the price of heavy fuel oil, which is one of its major inputs. If PP could use either options or futures contracts to protect itself against a rise in the price of crude oil, compute the payoffs in each case if the oil price were $86, $96, or $106 a barrel. Assume the current price of oil is $86 per barrel, the futures price is $96, and the option exercise price is $96. Futures-Hedged Options-Hedged Expense Expense Oil Price per Barrel $ 86 $ 96 $ $ 106