XYZ Co$.$ mines copper, with fixed costs of $$0\mathrm{.}50/$lb and variable cost of $$0\mathrm{.}40/$lb$.$ The $1-$year forward price of copper is $$1/$lb$.$ The $1-$year continuously compounded interest rate is $6\%.$ If XYZ sells a one$-$year call option with a strike of $$1\mathrm{.}00$ and a premium of $$0\mathrm{.}0376/$lb to hedge its copper production, what is its estimated profit per pound of copper $1$ year from now if copper price in $1$ year is $$$1\mathrm{.}20/$lb$?$

Question $21$ options:

$-$$$0\mathrm{.}16/$lb

$-$$$0\mathrm{.}06/$lb

$$0\mathrm{.}04/$lb

$$0\mathrm{.}14/$lb

$$0\mathrm{.}16/$lb

$-$$$0\mathrm{.}14/$lb