You Are the Buyer for a Cereal Company

You are the buyer for a cereal company. You think you will need 120,000 bushels of corn next month. The futures contracts on corn are based on 5,000 bushels and are currently quoted at 416*0 cents per bushel for delivery next month. If you want to hedge your cost, you should _____ contracts at a current value of _____ per contract.

A) buy 12; $499,200
B) buy 24; $20,800
C) buy 24; $499,200
D) sell 12; $20,800
E) sell 24; $499,200