d) In your effort to hedge 250 tons of CPO bought in October for RM2, 250 per ton in an open market, you entered into a futures contract by selling 10 lots (1 lot = 25 tons) in the same month at RM2,275 per ton. In a perfect hedge, what will be your futures contract price if you sell in February your physical CPO to the market at RM2,200. Show the calculation of both the profit and loss on the changeof price and the change of basis. Assuming the futures price decline more than the cash price when the hedgers closes out his position, what will be the result of the transaction? (15 marks) Month Cash market Future market basis