1. 

An aluminum buckets producer expects to buy 600 tons of aluminum in 3 months time. To hedge the cost of the input the producer goes long futures contracts for 500 tons aluminum at the cost of $3,000 per ton. In 3 months time the price of aluminum has fallen to $2,790 per ton. What will be the total cost of the 600 tons of aluminum (including any money received or spent to settle the futures contracts)? Assume all transaction costs are zero