The following information pertains to the next two questions.

Assume that our company has an inventory of aluminum alloy that it will sell to a customer in 90 days and that you face the following market prices.

	Spot Price	90 Day Futures Price
Today	$3.10	$3.07
90 days later	$3.09

3. If we purchase a futures contract today:

a. We will lock in a $0.03 loss

b. We will lock in a $0.03 gain

c. We will lock in a $0.01 loss

d. We will lock in a $0.02 gain

4. In 90 days:

a. We will be able to realize $3.07 for our inventory

b. We will be able to realize $3.09 for our inventory

c. We will be able to realize $3.10 for our inventory

d. We will be able to realize the current market price for our inventory