JR'S Business Requires a Steady Supply of Oil

J.R.'s business requires a steady supply of oil.After interviewing several suppliers,J.R.decided to buy his oil from Dub,who agreed to sell J.R.all the oil he needs at $50 a barrel for a period of one year.Suppose that the current oil price is $50 a barrel but that price tends to fluctuate widely over the course of a year.
If J.R.and Dub enter into a binding contract

A) J.R.will have less incentive to search for a cheaper source of oil.
B) J.R.and Dub will be faced with a commitment problem.
C) Dub will be certain to lose money,but will gain a steady customer.
D) J.R.will have an incentive to use more oil than necessary.