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An iron ore producer expects to produce 100 tons of ore in 6 months and 80 tons in 12 months. The futures contract price for

An iron ore producer expects to produce 100 tons of ore in 6 months and 80 tons in 12 months. The futures contract price for iron ore is $900 per ton in 6 months and $950 per ton in 12 months. The 6-month T-bill has a yield of 2.19%, and the 12-month T-bill has a yield of 4.24%. These are actual returns, not YTM where by convention the number reported in 2 x 6-mo rate. The iron ore producer into futures contracts and buy and sell T-bills so that you have a fixed amount of dollars today with no other cash flows at any other point in time. How many dollars will you have today?

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