It's November and Roarke decides to protect himself in the guinea pig futures market. Febfutures prices are currently $21.50 /pig and is local price is $20. He calls his broker and sell 500 February futures at $21.50. When it's time to buy an offsetting futures contract on Febfutures are $24 and Local Price =$21. Do the math showing how this hedge works out. Kee in mind that Roarke already sold all his guinea pigs on the local market. a. What is Roarke's nearby basis in November? (2pt) b. Calculate the outcome of Roarke's hedge to determine the profits or losses on the whole transaction. (5pt) c. Add any profits or losses from the hedge to Roarke's revenue from his local sales (calculated earlier) to determine a total revenue on this year's guinea pig crop. (4pt)