A clothing manufacturer is concerned that the price of cotton might rise and decides to hedge against this possibility.

a) Graph the clothing manufacturers current position.

b) Does your graph for part a represent a long or a short position?

c) What is measured on the i) vertical; and ii) horizontal axes of your graph

d) Graph the position the manufacturer should take to hedge

e) Does your graph for part d represent a long or a short position?

f) How would the clothing manufacturers futures account be marked to market if the contract was for 20,000 tons at a price of $0.72/ton and cotton futures closed the next day at $0.75/ton?

Need done asap!!!