The company buys 1000 units of the commodity from the spot market and closes its position in the futures market at the end of the hedge at time t=1.

What is the goal of this hedge? and explain.

A. Make a profit both in the spot market and the futures market using the hedge

B. Buy the commodity from the future price that will prevail one year later t=1

C. Buy the commodity from the spot price at the initiation of the hedge t=0

D. Buy the commodity from the spot price that will prevail one year later t=1