(a) Assume that a walnut farmer agrees to supply 100,000 pounds of walnuts to Diamond Foods during the Fall 2009 crop season. The walnuts are delivered on September 15, 2009 when the estimated price is $0.80/pound. Diamond agrees to make payments according to the following schedule: Date October 12, 2009 February 15, 2010 August 15, 2010 Payment 35 percent of the estimated price. Estimated price is $0.80/pound. 85 percent of the total payment based on the latest estimated price will be paid by this date. Estimated price on this date is $0.90/pound. The remaining payment is made.