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I export coffee from Colombia. Starbucks, the importer, is my client. Today, I call Starbucks and ask if they would like to purchase 1 8

I export coffee from Colombia. Starbucks, the importer, is my client. Today, I call Starbucks and ask if they would like to purchase 187,500 pounds of coffee for May 2024 delivery. Starbucks agrees and we settle on a price of "May plus 4"(May +4 or said another way, 4 cents over the May contract price.). Today, the May coffee futures contract is priced at 89.75. Fast forward into the future where for purposes of this scenario, assume that there are two days left in the May contract trading period and the price of the May 2024 coffee futures contract is now 82.30. I call Starbucks, and we agree to settle our business based on the new market price of 82.30(not taking into consideration the 4-cent premium). Assume I did everything by the book in terms of my hedging strategy based on what we learned in class.
How much did I make/lose on my coffee futures trade just with the coffee futures exchange?
A.
I made $1,396,875.00
B.
I made $2,793.75
C.
I made $13,968.75
D.
I made $279,375.00

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