General Foods buys wheat on the cash market for its many cereal products. In January, the cash price is $$6\mathrm{.}40$ per bushel. The April futures contract is trading at $$7\mathrm{.}00$ per bushel.

a$.$ To hedge against price risk does the firm go long or short in the futures market for wheat?

b$.$ In April the cash price is $$7\mathrm{.}50$ per bushel, while the April futures price is $$8\mathrm{.}10$ as well on the same day. Does General Foods' have a loss or gain per bushel in the cash market?

c$.$ What was it$?$

d Does General Foods' have a loss or gain per bushel in the futures market?

e$.$ What was it$?$