The Treasurer of a bakery wishes to use a financial derivative to eliminate the influence of the market price of wheat on the company's profits. The bakery must buy wheat in six (6) months time.

Which of the following hedging strategies best meets the Treasurer's needs?

a.

Sell a futures contract for delivery after six months and close-out at six months.

b.

Buy a forward contract for delivery in six months.

c.

Buy a call option that matures in six months.

d.

Sell a put option that matures in six months.