7. It is now Jan 12:. As the proud owner of a chain of jewelry stores, you are concerned about an increase in the price of silver and would like to hedge this risk using futures contracts. Specifically, you would like to hedge against any changes in the price of silver between now and Valentine's Day (Feb 14th), when you will purchase 10,000 troy ounces of silver to replenish inventories. Listed contracts on silver include delivery months of January. March, May. July. September and December only. Each contract calls for the delivery of 5,000 troy ounces. a. Which contract will you most likely choose for hedging? Explain. b. Will you achieve a "perfect" hedge? Explain. c. The table below displays spot and futures prices per troy ounce of silver. Based on the listed prices, what is the spot price of a troy ounce of silver at maturity of the March contract? d. Illustrate your answer to part (b) using the prices in the table below. What is the total effective cost of 10,000 troy ounces of silver on February 14th (including any profit/loss from the hedge)