Cant figure this one out, please help!

Recen me that your family farm is located in the of the diverse growing regions of the cowhere ben, diy bebe Your to Michigan State and earn a degree in AB eventually take over the farm. The best and dry every you while the soybeans, wheat and come so ing has become more difficult each year give the volatility of dhe prices and this year the operation was unhapod. It is November and your feet y thinking about the new crop and he has asked you to develop a stepenak management program to reduce the uncertainty for com and soybeans et year. Here we pese peces of information that he is giving you to structure the plan 600 acres will be planted in com this year, with a five-year everage yield of 1661 per acre pal(note, assume that acres harvest will be the same as acres planted) 600 acres will be planted in soybeans this year, with a five year average yield of 50 bus per acre pa). (note, assume that acres harvest will be the same as acres planted) Since your father has never hedged before he would like to scale into the process He wants to hedge 40% of the com production, and hadge 333% of the soybeans production Here is the current corti market information from the CME CBOT, November 8, 2021 Price Unit: Cents and quarter.cents/bu. Contract Size : 5000 bushes MONTH LAST OPEN HIGH LOW Dec 21 542 5510 5564 5475 Mar-22 5550 5602 5658 5574 May-22 5632 5656 5706 5630 Jul-2 5052 5672 5724 5616 Sep 22 5136 5445 5450 5422 Dec-22 5352 5374 5404 5342 Here is the current soybean market information from the CME CHOT, November 2001 Price wt: Cents and arter cente/te Contract Size : 5.000 LAST OPEN CH LOW Mar 22 1197 198 12052 11930 May 22 12050 1211 121212044 12142 12200 1220 12134 Petures Market Information 5. You hedge the DEC22 com contract(s) at the open price for the day. What is the open price in dollars per 6. You hedge the NOV 22 soybean contract(s) at the low price for the day. What is the low price in dollars? (2 pts) 7. When November 1" rolls around, you offset your futures position for sybeans. The November futures contract price is now S10.2350/bu. Also on November 15 you sell the soybeans that you have harvested on the cash market at the same price of S10 2550 bu. What is your per bushel profit or loss in the futures mortel? (4 pers.) What is your total profit loss in the former (de) Farmer Production II: Assume that your family farm is located in the Thumb of Michigan which is one of the most diverse growing regions of the country where you might grow five different crops such as wheat, com, soybeans, dry beans and sugar beets. Your parents are paying for you to go to Michigan State and earn a degree in Ag Business Management so that you can come back and eventually take over the farm. The sugar beets and dry beans are grown under contract every year while the soybeans, wheat and corn are sold in the cash market. Planning has become more difficult each year given the volatility of corn, wheat, and soybean prices and this year the operation was unhedged. It is November and your father is already thinking about the new crop and he has asked you to develop a strategic risk management program to reduce the uncertainty for corn and soybeans next year. Here are the specific pieces of information that he is giving you to structure the plan: 600 acres will be planted in com this year, with a five-year average yield of 166.7 bushels per acre (bpa). (note, assume that acres harvest will be the same as acres planted) 600 acres will be planted in soybeans this year, with a five-year average yield of 50 bushels per acre (bra). (note, assume that acres harvest will be the same as acres planted) Since your father has never hedged before he would like to scale into the process: He wants to hedge 40% of the corn production, and hedge 33.3% of the soybeans production Here is the current corn market information from the CME/CBOT, November 8, 2021 Price Unit: Cents and quarter-cents/bu. Contract Size = 5,000 bushels MONTH LAST OPEN Dec-21 5482 5510 556'45476 Mar-22 5580 5602 5656 5574 May- 5632 565'6 570'6 5630 Jul-22 5652 5672 5724 5646 Sep-22 5436 5446 5480 5422 Dec-22 5352 5374 5404 5342 HIGH LOW 22 Here is the current soybean market information from the CME/CBOT, November 8, 2021 Price Unit: Cents and quarter-cents/bu. Contract Size : 5,000 bushels MONTH LAST OPEN HIGH LOW Mar-22 11944 1199612052 1193'0 May- 1205'6 1211012162 12044 22 Jul-22 1214212200 1224'6 12134 Recen me that your family farm is located in the of the diverse growing regions of the cowhere ben, diy bebe Your to Michigan State and earn a degree in AB eventually take over the farm. The best and dry every you while the soybeans, wheat and come so ing has become more difficult each year give the volatility of dhe prices and this year the operation was unhapod. It is November and your feet y thinking about the new crop and he has asked you to develop a stepenak management program to reduce the uncertainty for com and soybeans et year. Here we pese peces of information that he is giving you to structure the plan 600 acres will be planted in com this year, with a five-year everage yield of 1661 per acre pal(note, assume that acres harvest will be the same as acres planted) 600 acres will be planted in soybeans this year, with a five year average yield of 50 bus per acre pa). (note, assume that acres harvest will be the same as acres planted) Since your father has never hedged before he would like to scale into the process He wants to hedge 40% of the com production, and hadge 333% of the soybeans production Here is the current corti market information from the CME CBOT, November 8, 2021 Price Unit: Cents and quarter.cents/bu. Contract Size : 5000 bushes MONTH LAST OPEN HIGH LOW Dec 21 542 5510 5564 5475 Mar-22 5550 5602 5658 5574 May-22 5632 5656 5706 5630 Jul-2 5052 5672 5724 5616 Sep 22 5136 5445 5450 5422 Dec-22 5352 5374 5404 5342 Here is the current soybean market information from the CME CHOT, November 2001 Price wt: Cents and arter cente/te Contract Size : 5.000 LAST OPEN CH LOW Mar 22 1197 198 12052 11930 May 22 12050 1211 121212044 12142 12200 1220 12134 Petures Market Information 5. You hedge the DEC22 com contract(s) at the open price for the day. What is the open price in dollars per 6. You hedge the NOV 22 soybean contract(s) at the low price for the day. What is the low price in dollars? (2 pts) 7. When November 1" rolls around, you offset your futures position for sybeans. The November futures contract price is now S10.2350/bu. Also on November 15 you sell the soybeans that you have harvested on the cash market at the same price of S10 2550 bu. What is your per bushel profit or loss in the futures mortel? (4 pers.) What is your total profit loss in the former (de) Farmer Production II: Assume that your family farm is located in the Thumb of Michigan which is one of the most diverse growing regions of the country where you might grow five different crops such as wheat, com, soybeans, dry beans and sugar beets. Your parents are paying for you to go to Michigan State and earn a degree in Ag Business Management so that you can come back and eventually take over the farm. The sugar beets and dry beans are grown under contract every year while the soybeans, wheat and corn are sold in the cash market. Planning has become more difficult each year given the volatility of corn, wheat, and soybean prices and this year the operation was unhedged. It is November and your father is already thinking about the new crop and he has asked you to develop a strategic risk management program to reduce the uncertainty for corn and soybeans next year. Here are the specific pieces of information that he is giving you to structure the plan: 600 acres will be planted in com this year, with a five-year average yield of 166.7 bushels per acre (bpa). (note, assume that acres harvest will be the same as acres planted) 600 acres will be planted in soybeans this year, with a five-year average yield of 50 bushels per acre (bra). (note, assume that acres harvest will be the same as acres planted) Since your father has never hedged before he would like to scale into the process: He wants to hedge 40% of the corn production, and hedge 33.3% of the soybeans production Here is the current corn market information from the CME/CBOT, November 8, 2021 Price Unit: Cents and quarter-cents/bu. Contract Size = 5,000 bushels MONTH LAST OPEN Dec-21 5482 5510 556'45476 Mar-22 5580 5602 5656 5574 May- 5632 565'6 570'6 5630 Jul-22 5652 5672 5724 5646 Sep-22 5436 5446 5480 5422 Dec-22 5352 5374 5404 5342 HIGH LOW 22 Here is the current soybean market information from the CME/CBOT, November 8, 2021 Price Unit: Cents and quarter-cents/bu. Contract Size : 5,000 bushels MONTH LAST OPEN HIGH LOW Mar-22 11944 1199612052 1193'0 May- 1205'6 1211012162 12044 22 Jul-22 1214212200 1224'6 12134