Swenson Oil & Gas Allows Its Customers to Prepurchase Heating

Swenson Oil & Gas allows its customers to prepurchase heating oil in December for the coming winter.Customers who took advantage of the offer prepurchased 1,600,000 litres of oil at $0.875 per litre.Swenson hedged its position by contracting to purchase 1,600,000 litres of oil for May delivery at a price of $0.75 per litre.If the May spot price is $0.9625 per gallon,Swenson's gross profit on the heating oil sold in December will be

A) $100,000.
B) ($100,000) .
C) $200,000.
D) $0.00.