baking firm plans to buy 5,000,000 bushels of wheat hin the next few months. The current price for wheat is S4.45/bushel. The baker is concerned the price of wheat will increase, so it wants to hedge that risk. (15 points) $4.45/bushel Current price of wheat: Kansas City wheat futures S4.60/bushel Two months later the firm buys the wheat and covers its hedge. Prices at that time are.. Price of wheat Kansas City wheat futures $4.80/bushel .90/bushel S4 a. What is the anticipated transaction? b What can be done to hedge this risk? (i.e. buy/sell? what? how much?) c. How much does the firm pay/receive when it carries out the anticipated transaction? d. What does it do to cover the hedge position? Did the profit or a loss, and how hedge transaction produce a much? e. Combining the results of the anticipated transaction and the hedge, what is the transaction? effective price of the overall