2. (10 points) Juan Valdez is a coffee grower who is planning to harvest 200,000 pounds of coffee on June 1. The current price for coffee is $2 per pound. A futures contract on coffee that matures on June 1 also costs $2. a) If a contract consists of 50,000 pounds of coffee, how many contracts does Mr. Valdez need to buy or sell to hedge his perfectly? b) Show the net gain or loss if the price of coffee rises to $2.50 per pound on July 1. c) Show the net gain or loss if the price of coffee falls to $1.50 per pound on July 1