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Given CBA Corporation is expecting to need 1,000,000 bushels of corn in 5 months. The spot rate is $3.25. The future rate is $3.5 (six

Given

CBA Corporation is expecting to need 1,000,000 bushels of corn in 5 months.

The spot rate is $3.25. The future rate is $3.5 (six month contract).

In 5 monthS

The spot rate is $3.6. The future rate is $3.75.

A. Do I Buy or Sell to hedge?

B What is the opportunity loss/profit?

C. What is the future loss/profit?

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