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4. Elkhorn Valley Ethanol needs to buy 2.5 million bushels of corn for December 2022 delivery. On August 31, 2022, the spot price of corn

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4. Elkhorn Valley Ethanol needs to buy 2.5 million bushels of corn for December 2022 delivery. On August 31, 2022, the spot price of corn is $6.70 per bushel and the December 2022 futures price is $6.67. Each futures contract is written on 5,000 bushels. What position should Elkhorn Valley Ethanol take to hedge its exposure (long or short position, and number of contracts)? What is the outcome if the spot price in September ends up being $5.20 ? How about if the spot price in September ends up at $7.25

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