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Del Monte will buy 100,000 bushels of corn in three months. To protect against price volatility, they decide to hedge with a three-month futures contract

Del Monte will buy 100,000 bushels of corn in three months. To protect against price volatility, they decide to hedge with a three-month futures contract at $4.50/bushel. The current price is $4.00/bushel. Corn trades in 5000-bushel contracts. If the price per bushel of corn increased to $4.75 after three months, what is their OVERALL net gain or loss?

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