A client PT SUPER Beverages needs 150,000 bushels of corn in December 2020 for an upcoming production. Please refer to the WSJ Futures contracts quote that is available on the next page. Suppose today is August 10, 2020, and you would like to lock in your costs today because you are concerned that corn prices might go up between now and December a) How could you use corn futures contracts to hedge your risk exposure? What price would you effectively be locking in based on the closing price of the day? (15 points) b) Suppose corn prices are $4.80 per bushel in December. What is the profit or loss on your futures position? Explain how your futures position has eliminated your exposure to price risk in the corn market! (15 points) Che interest 872 Dee Sept 219 385 NON Futures Contracts wsj.com/commodities Metal & Petroleum Futures Contract pen Open Setti High hilo Low Contract Ong III BI Open Open High lo Low Cocon ICEUS) 10 metre bons perton Settle Sepe 2.45 2,514 2.445 2.466 24 Copper-High (CMX)-25,000 is perib 32.840 Dec 2.450 2.525 2.450 2475 21 69,924 Aug 32485 3.2810 32485 3.2705 000 1,200 Coffee (ICE-US-37 500lbs cents perib Sept 3.1855 3.2795 31745 3.2705 0.0075 19,627 Sept 120.65 123.60 12040 1220 1.00 72,978 Gold (CMX)-100 tray 2, pertray Ded 123.75 12620 123.10 12480 100 123 20 1313 70 53,912 Sept 1283.00 1310 10 24.70 677 Sugar World (ICE-US)-112.000 lbs cents per Oct 1280.00 1313.80 1283.50 1310.10 24.60 30,201 er 10.79 16.86 16.71 1682 04 444,725 Dee 12850 131380 1282.00 13000 24.60 246548 March 1417 17.43 17.20 17.40 01 216,645 Feb'14 285 20 1314.00 1285.20 13100 24.7028.658 April 1280.00 1314.00 Sugar Domestic (ICE US):112,000 lbs. conta perib 1280.00 1311 80 24.0 21.061 Nov 20 30 20.30 20.30 -10 1205 60 1315 30 2.774 June 1245.60 1312.50 24.015.771 Cotton (ICE-US) 50.000 lbs. cents per i miNY Gold (CMX-50 try : Sper trovo 89.45 88.53 898 85 247 Oct 1291 75 1314.00 128700 1310.00 2450 1,303 Dec 8833 R808 89.25 92 Dee 1284.50 1314.00 1281.00 1310.00 2475 329 Orange Juice ICE-US)-15.000 cunts per i Palladium INYMI TO Troy. Sper treya Sept 138 45 140.25 1270 138 40 05 10,299 Sept 724.50 7430 723.107385 15.40 33,009 Nov 13.30 137.75 Platinum (NYM) 50 royons per troy 138.45 7,542 Sept 143410 1503 40 A 1404 10 1490.70 53.30 Interest Rate Futures Oct 1440,60 1493 60 1436.20 1491.60 53.30 58,943 Silver (CMX 5.000 tray , Spertrays. Treasury Bonds (CBT) S100,000, 32nds of 100% Supt 133-280 14-200 135-240 134-00 Sept 19 525 20.310 120 577,672 19.455 20.190 0.685 67,285 Dec Dec 132-160 130-060 2,836 19.550 20.355 132.150 132-700 12.00 19.550 20.244 0.682 38.252 MINY Silver (CMX)-2,500 troys per treya Treasury Notes (CBT 5100,000 ps 2nds of 100% Sept 126-205 126-290 120-185 126-200 Sept 19.550 20.300 55 2.257,487 19.550 20.160 0.675 155 Ded 125-250 129-310 125-220 125-285 5.5 20.188 20 300 544.422 20 180 20.250 0.688 51 5 Yr. Treasury Notes (CBT)-5100.000, pts 32nds of 100% Jan 14 20 288 20.288 20.288 20.263 0.688 1 Sept 121.147 121-192 121.140 121-170 1.7 1614,287 Crude Oil Light Sweet NYM-1,000 bols. Sper bb Dec 120-240 Sept 1041810458 2.00 102.22 0.57 281,082 120-192 120-222 12,431 10340 Oct 103.68 10447 2 Yr. Trenury Notes (CBT)-5200,000. pts 32nds of 100% 101.81 102.82 -104 10.067 Sepi 110-057 110-060 110-052 110-057 2849,931 Nov 102 57 103 25 100.30 10175 -100 131,670 Dec Dec 110-015 110.017 2,440 101 30 101.5 110-010 110-012 99.65 100 500.00 203.716 30 Day Federal Funds (CBT)-5.000.000, 100-daily avg. June 1495359565 93.96 34.50 0.63 116,032 99.90899910 A 99.SOS 99.00 002 A. 35.73 Dec 82 289252 10:34 91.70 0.51 226,881 Sept 99.905 99.505 99.900 99900 29.248 Heating Oil No. 2 INYM) 42.000 gats pergal 10 Yr. Int. Rate Swaps (CBT)-$100,000 ps 32nds of 100% 25660 2.9753 29193 2.9574 - 0058 81,254 Sept 110.219110.400 Dec 110.141 110 29788 2.9000 2.9340 2.9706 0089 46.069 1 Month Libor CME)- $3,000,000, pts of 100% Gasoline NY RBOB INYM) 42.000 gal Spergal Aug 90.8150 183 Sept 28211 2.88 et 28161 28576 -0135 90.817 Eurodollar (CME)-51.000.000 pts of 100% 2.7517 2.7877 2.89922.7383 0126 55.011 Aug 99.7325 27350997325 99.7325 0025 Natural Gas (NYM)-10,000 MM. S per MMB. 39.478 Sept 99.7200 99.7300 813,834 Sept 3.237 3326 3.129 3.297 99.7200 99.7200 050 4.50 Dec 99.6550 99 6900 19.6850 19.5850 et 3262 3350 3154 3321 354,862 049 189.277 March 14 90.6450 9.6450 19.640039 6400 DO 3.382 3.45 3.281 786,876 3:442 050 125.151 Jan 14 3.657 3.742 3.564 3.717 049 159.538 Currency Futures March 3.630 3.710 3540 368) DAS 94.420 Japanese Yen (CME)-V12 500,000. Sper 100 April 3527 3.656 3.494 2.634 046 115,841 Sepe 1.0376 10440 10317 1,0352-0016 164,224 Canadian Dollar (CME-CAD 100,000. S per CAD Agriculture Futures Sept 9587 5696 9578 964 0099 100,861 Cor (CBT-5.000 cents per bu June 14 9575 3600 5521 9620 0090 380 Sept 08.00 67575 468.00 473 50 5.25 282,579 Dec 452.75 454 25 British Pound (CME) 162.500, Spor E 457.00458.75 1.50 630,806 Sept 1547 15570 1.5450 15544 0052 143,340 Ethanol (CBT) 29.000 . Sporal Swiss Franc (CME-CHF 125,000 S per CHF Sept 2189 2.200 2.17 2.100 - 00 1,874 Sept 108521 0904 1.03 100 0022 35,702 Oct 1946 1946 1920 1931 -00 1.937 Dee 1.0871 10802 1,003 10899 Oats (CBT) 5,000 bucents per bu 0027 118 Sept Australian Dollar (CME). AUD 100,000 per AUD 355.75 362.75 352.00 362.00 9.75 827 Sept 8973 9113 0549 0132 200,103 327.00 229 25 Dec 325.50 327.00 7,260 Mexican Peso (CME)-MXN 500,000 $ per 10MXN Seybeans (CBT)-5,000 bucents per tre 07830 07923 Supt 07815 1328.00 1358 50 07915 00095 28.00 1328.00 1355.75 Euro (CME) C125.000, 5 perc Nov 1165 00 1190.00 1164 75 11842 18.50 313.463 Sapt 13333 13402 1.3323 1.391 0057 273,360 Soybean Meal (CBT)-100 ton perton Dec 13345 1.3405 1.3335 1.335 0057 4,043 Aug 400 70 424 00 400,70 422.50 2220 2,280 Euro/Japanese Yen (ICE-US-C125,000 per Dec 347 40 358 80 346.80 356.80 9:40 148, 121 Sept 128.77 129.00 128.32 129 23 Seyhan Di CBT)-60,000 lbscunt perib 3,401 Aug 41.83 41 S4 7 41 63 Euro/British Pound (ICE-US)-125,000 perc 41 01 1,398 Sepe 0.85 1.00 4,154 Dec 4211 423 42.04 Rough Rice (CBT)-2.000 wt. Sper cwt Euro/Swiss Franc (ICE-US)-125.000, CHF perc Sept 12308 997 Nov 1557.00 1570.00 0022 1540.00 1566.00 -450 4.300 Jan 14 1560 50 1595 00 1565.00 1570.00 -5.00 200 Index Futures Whent (CBTI-.000 bucents per bu DJ Industrial Average (CBT)-510, xindex Sept 643.00 66325 639.75 641.25 -2.25 157.181 1544215515 15375 1545 10 Dec 14,512 655 25 660 25 652.00 53.75 -2.50 181.535 Wheat (KC)-5,000 bucents perbe Mini DJ Industrial Average CBT) SS xindex Sept 15448.0 15523,0 15371.0 154520 10.0 124,687 Sept 699.00 707.00 697.50 102.00 3.00 57.297 S&P 500 index (CME-S250 index Dec 705.00 712 25 202.75 706.75 -7550316 Sept 1688.40 1698 80 1884.50 1853.70 5.50 Wheat (MPLS) 5,000 bucents per bu 158,610 1683.00 1689.80 1678.80 168730 5.50 Sept 735.50 741.00 733,00 733 50 -2.75 15.578 Mini S&P 500 (CME)-SSO xindex Dec 744.50 149 25 741.00 741 50 -3.00 12,020 Sept 168875 1697.00 1684 50 633 75 5.50 2.791,337 Cattle-Feeder (CME) 50,000 lbs, cants per i Des 168175 180.50 5.50 1678.25 1687 25 44,310 Aug 153.700 154 550 153.025 154.250 1.675 7,018 Mini S&P Midcap 400 CME-S100 index Sept 157 800 159.375 157.150 157 825 1.450 11.698 Sepi 122336 1237 90 1228.60 123450 5.00 122,718 Cattle-Live (CME) 40,000 lbs. cents per ib. Nastag 100 CME)-S100 Kindex Aug 122 600 123.575 122.450 122.675 1.450 13.042 Sept 3118.00 3130.00 3100.003127.00 11.00 3,770 et 127.000 127.675 126.275 127.075 2.400 142,030 Mini Nasdaq 100 (CME-520 index Hogs-Lean (CME) 40,000 lbs. cont perib Sept 3117 3136 50 3108.50 3127.00 11.00 405,000 100 525 101025 100 250 100 25 600 85 700 85.650 12.501 Oct Mini Russell 2000 (ICE-US) S100 index 84.900 5.250 325 126.316 Sept 1045.00 1051 80 1041 SO 104700 3.10 355.189 Lumber (CME)-110,000 hd.tt. Sper 1,000 bd. Mini Russell 1000 (ICE USH-S100ndex Sept 306 00 310.60 301.60 304.50 3,551 Sept 942 30 94360 936 50 94150 3.10 9,567 300 10 312 10 303.103060 2.232 U.S. Dollar Index (CE-US) 51.000 index Milk (CME-200.000 lbs, cents per i 81 33 81.40 Sept 80.90 8103 -30 69,003 Aug 18.12 18.24 18.08 18.10 04 3,833 Dee 8163 B1.15 B1 26 -30 734 Sept 18.18 18.44 18:14 18.30 24 4,743 Source: SIX Financial Information Aug 1.135 12.10 Set Dec A NOM