A purchasing manager of a food company is worrying an increase in corn price will have a negative impact on the profit margin of the company in 3 months. Her analysis suggests that corns should be trading at 360 after 3 months.

a. Should the manager go long or short for the future contract?

b. A 3 months future contract is now trading at 340 (50000 lb/contract; cents/lb). If her expectation was right, what is the percentage return on invested capital she would make if the initial margin is $6000 per contract?