7. It is currently June, and a our manufacturer plans to purchase 10,000 bushels of wheat in December. Currently, a December wheat contract is trading at 350/bu. In December, wheat costs 400/bu. in the local cash market and a December wheat contract is also trading at 400/bu. Fill in the table given here to describe the actions this manufacturer will take in the cash & futures exchange to hedge against a higher-than- expected price, the gain/loss the manufacturer will experience in these markets, and the net price that the manufacturer will pay for wheat. Time Period Cash Market Futures Exchange June December Gainx'loss Net Price 8. Redo the hedging problem from Question 7 with the following changes. The manufacturer plans to buy wheat in November. The cash price is currently 400/bu. and is still 400/bu. in November. The December futures contract price is currently 350/bu. and is 395/bu. in November. Time Period Cash Market Futures Exchange Basis June November Gainx'loss Net Price