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11. Assume that you are employed by the Grains Galore Exporting Company (GGEC), and you have just negotiated to sell 10 million bushels of corn

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11. Assume that you are employed by the Grains Galore Exporting Company (GGEC), and you have just negotiated to sell 10 million bushels of corn to India at a price of $4.25/bu. However, the delivery will not occur until September, six months from now. You will sell the grain to a transporter at a local port at the September local market price. How can you guarantee a profit for GGEC if the September corn futures contract is currently trading at $4.00/bu? Describe how you can use the futures market, your position in the futures market, and the number of contracts you would need to sell or buy. In September, describe how you would fulfill your obligations in the futures market and those regarding your negotiated deal with India. What would be your per unit equity? How much will you earn in total? (20 pts)

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