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In six months, a cereal company plans to sell 2 0 , 0 0 0 boxes of Wheat Crisps for $ 3 . 0 0

In six months, a cereal company plans to sell 20,000 boxes of "Wheat Crisps" for $3.00 per box and will need to buy 10,000 bushels of wheat to do so. In doing so, it also incurs non-wheat costs of $3,000. The current spot price of wheat is $5.30 per bushel, and the six-month forward price is $5.62. The company will hedge by buying wheat forward. What total profit would be earned if the market price of wheat in six months is $4.70, $5.10,$5.50, and $5.90, respectively?
$2,262;$-1,738;$-2,738;$-2,738
Correct Answer Is $800;$800;$800;$800
$10,000;$6,000;$2,000;$-2,000
$12,738;$12,738;$9,738;$5,738
$2,926;$2,926;$-1,074;$-1,074
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