You Are a Jewelry Maker

You are a jewelry maker. Every July you need to purchase 10,000 troy ounces of silver to cover your production needs. Today you hedged your position at what turned out to be the lowest price for the day. Assume that the actual price per troy ounce of silver is 605.0 at time you need the silver in July. How much more would you have spent or saved if you had not hedged your position?

A) You saved $800.
B) You spent an extra $800.
C) You saved $8,000.
D) You spent an extra $8,000
E) You saved $80,000.