The Fournos bakery sells blueberry muffins for $5 per muffin. The bakery will need to buy 100 kilograms of blueberries in six months to produce the 2,000 muffins needed for the Longsdale Festival. Non-blueberry costs total $5,000 in six months time. Assume that the continuously compounded risk-free interest rate equals 0.04 p.a.. Local farmers are financially sophisticated and can self-finance/borrow money for their operations. Our bakery uses one hundred $1.9-strike, six-month call options (each on a kilogram of blueberries) to hedge against rising prices of blueberries. The calls can be bought now for $0.35 per call. Assume that the market price of a kilogram of blueberries is $2 in six months. What is the profit of the bakery s hedged portfolio at the end of the six months? Select one:

a. $4,774.3 b. $4,764.3 c. $3,219.6 d. $1,429.3