3. Sixty futures contracts are used to hedge an exposure to the price of silver. Each futures contract is on 5,000 ounces of silver. When hedge started, the spot price of silver is $19.80 per ounce and the futures price is $20.05 per ounce. At the time the hedge is closed out, the basis is $0.20 per ounce. What is the hedger's payoff if (a) the trader is hedging the purchase of silver and (b) the trader is hedging the sale of silver?