4. On February 1st, Brazil Coffee Farms Inc. decides to hedge its upcoming sale of three hundred pounds of coffee which will take place on March 1st. It uses a hedge ratio of 0.85. It does not use a tailing the hedge adjustment. Each futures contract is for delivery of 50 pounds of coffee. On February 1st the per-pound spot price of coffee is 1.30 and the futures price is 1.34. On March 1st the per-pound spot price of coffee is 1.25 and the futures price is 1.21. What is the effective sales price received by Brazil Coffee Farms Inc. on its coffee sale?