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 $50, $60, or $70 a barrel. Assume the current price of oil is $50 per barrel, the futures price is $60, and the option exercise price is $60.

Oil Price Per Barrel	Futures-Hedged Expense	Options-Hedged Expense
$50
$60
$70