25. Archer Daniels Midland (ADM) will purchase 750 million bushels of soybeans in November. ADM is short in soybeans and so it will be a "long hedger" - it will take a long position in soybean futures. In April, the soybean spot price is 910 and the November soybeans futures price is 872. Assume that the spot price in November at delivery will be one of three values: 841, 880, or 915. Show that no matter which these three spot prices prevails at delivery/settlement of the November futures contract, ADM pays the same effective price per bushel of soybeans. $8.72/bushel