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 $70, $80, or $90 a barrel. Assume the current price of oil is $70 per barrel, the futures price is $80, and the option exercise price is $80. Futures-Hedged Options-Hedged Expense Expense Oil Price per Barrel $ 70 $ 80 $ 90