Ayayai Golf Co. uses titanium in the production of its specialty drivers. Ayayai anticipates that it will need to purchase 270 ounces of titanium in November 2025, for clubs that will be sold in advance of the spring and summer of 2026. However, if the price of titanium increases, this will increase the cost to produce the clubs, which will result in lower profit margins. To hedge the risk of increased titanium prices, on May 1, 2025, Ayayai enters into a titanium futures contract and designates this futures contract as a cash flow hedge of the anticipated titanium purchase. The notional amount of the contract is 270 ounces, and the terms of the contract give Ayayai the right and obligation to purchase titanium at a price of $675 per ounce. The price will be good until the contract expires on November 30, 2025. Assume the following data with respect to the price of the futures contract and the titanium inventory purchase. Spot Price for November Delivery Date May 1, 2025 $675 per ounce June 30, 2025 702 per ounce September 30, 2025 709 per ounce