The following problems use this information:

XYZ mines copper, with fixed costs of $$\frac{0\mathrm{.}50}{l}b$ and yariable costs of $$\frac{0\mathrm{.}40}{l}b$

ABC buys copper and produces wire. $\frac{?}{\text{b}\text{a}\text{r}}($ One pound $of$ copper can $be$ used $to$ produce one $)$

unit of wire, which sells for $$6.$ Fixed cost per unit is $$3$ and non$-$copper variable cost is

$$1\mathrm{.}50.$

The $1-$yr forward price of copper is $$\frac{1}{l}b$

The $1-$year continuously compounded interest rate is $6\%.$

The $1-$year call and put option premiums $($with strike of $$1)$ are both $$0\mathrm{.}0376.$

$[6$ points$]$ What is ABC $\text{'}$s unhedged profit function per pound of copper? If ABC buys a call

$(K=1)$ to hedge its profit, what is the hedged profit function? Graph both the unhedged

and hedged profit functions.