63% D + 4:23 PM d21.depaul.edu ooo Sprint LTE A ba king firm plans to buy 5,000,000 bushels of wheat e next few months. The crrent price for wheat is S4.45/bushel. The baker is concerned the price of wheat will increase, so it wants to hedge that risk. (15 points) Current price of wheat: Kansas City wheat futures S4.60/bushol $4.45 bushel Two months later the firm buys the wheat and covers its hedge. Prices at that time are $4.80 bushel Price of wheat: Kansas City wheat futures S4.90/bushel a. What is the anticipated transaction? b. What can be done to hedge this risk?i.e. buy/sell? what? how much?) c. How much does the firm pay/receive when it carries out the anticipated transaction? d. What does it do to cover the hedge position? Did the hedge transaction produce a much? profit or a loss, and how e. Combining the results of the anticipated transaction and the hedge, what is the transaction? effective price of the overall