25.3 The following table lists the closing prices for wheat futures contracts. Suppose you bought one contract at $5.00 at the opening of trade on March 15.

March 15 $5.03 March 16 $5.08 March 17 $5.12 March 18 $5.10 March 19 $4.98

a. Suppose that on March 18 you receive from your broker a notice of delivery on that day.

i. What is the delivery price?

ii. What price did you pay for wheat?

iii. List the cash flows associated with this contract.

b. Suppose that on March 19 you receive from your broker a notice of delivery on that day.

i. What is the delivery price?

ii. What price did you pay for wheat?

iii. List the cash flows associated with this contract.