A mining company agrees to receive $2.65 pound for the next 3 years, in return it will pay the average price (spot) of copper each year.
Average prices for copper equal: 2.65,2.60,2.40
What do net cash flows look like from the company's view?
A. 0, 0.05, 0.25
B. 0,-0.05, -0.25
C. 0, 0.5, -0.15
D. 0.05, 0.10, 0.30