In each of the five problems below:

$($a$)$ Describe the elevator$$s hedging activity and,

$($b$)$ Compute the profit of the elevator $($ per bushel $)$ using the information in the table.

Note: Storage cost is $$\mathrm{.}05/$month $/$ bushel

Date Spot Price$/$Bu$.$ March Futures Price

Sept. $1$ $ $2\mathrm{.}10$ $ $2\mathrm{.}34$

Oct. $12\mathrm{.}052\mathrm{.}20$

Nov. $12\mathrm{.}202\mathrm{.}38$

$1.$ Elevator purchases grain from a farmer on September $1$ at three cents under the spot and immediately sells it at one cent over the spot.

$2.$ Elevator purchases grain from farmer on September $1.$ He has no immediate buyer so he puts it into storage and hedges. On November $1$ he has a buyer at one cent over the spot price. He sells and liquidates his hedge.

$3.$ Elevator buys from farmer on September $1$ at the March futures price less $25$ cents, where the farmer sets the date the futures price will become effective. However, he delivers the grain to the elevator immediately. On September $1,$ the elevator sells the grain at the spot price plus $2$ cent and hedges. On November $1,$ farmer decides to collect his money. Elevator lifts his hedge.

$4.$ Elevator buys from farmer on September $1$ at March futures less $26$ cents, where the farmer sets the date the futures price will become effective. The farmer delivers the grain on September $1,$ but the elevator does not have an immediate purchaser so he stores the grain. A purchaser appears on October $1$ at the spot price plus $6$ cent. On November $1,$ the farmer decides to collect his money. How could the elevator hedge:

From September $1$ to October $1?$ From October $1$ to November $1?$

$5.$ Elevator agrees to pay farmer the spot price on any date the farmer chooses less a total fee that consists of: a flat fee of $3$ cent$/$ Bu$.$ and a $4$ cent$/$ Bu$.$ fee per month. The farmer delivers the grain on September $1$ whereupon the elevator immediately sells the grain at the September spot plus $2$ cent and also hedges. On November $1$ the farmer demands his money and the elevator lifts his hedge.

Can you help explain these questions with step by step calulations so I can study these questions