XYZ Ltd. will purchase 5500 units of silver in one year. It decides to hedge 80% of its exposure using futures contracts. The spot price and the futures price are currently $3400 per unit and $3439 per unit, respectively. The spot price and the futures price in one year turn out to be $4348 per unit. What is the average price paid (per unit)for this silver? Select the most suitable answer.

a.

$3439.0

b.

$3622.8

c.

$3617.8

d.

$3620.8

e.

$4348.0