Hey guys, i need the answer to this question. The answer is already in here, however my payment is not being processed, and i already contact coursehero admins, but my assignment is due in 2hrs.

Question 2.

Instead of taking the delivery the manager can take positions in the futures and spot market. For example, take 10 long May wheat futures contract at the prevailing futures price, close the futures at the future price (Ft) prevailing then. Long 50,000 bushels of wheat in the spot market in May at the spot price (St) prevailing then. Calculate the gain or cost in the futures market and spot market? What is the overall net cost to the Bakery? Explain the outcome and compare with your answer to part (a)."

Thanks so much guys,