Need help with this question. Thank you!

1. Your company uses large amounts of com in its production. You have been asked to put together a proposal to hedge exposure to the price of com. (a) If you expect to use 50,000 bushels of corn in March 2021, draw a diagram showing (i) the business risk of your company for different prices of corn in March 2021 and (ii) the appropriate Jtures contract that can hedge this risk. (b) Using today's spot price (you can use the shortest term ttures price), should you buy and store corn until March 2021 or buy corn in the futures market for March 2021 delivery (Note: ignore storage costs, assume March 2020 is 6 months away, and use an annual risk-ee rate of 1%). (c) Using the numbers in (b), describe in detail an arbitrage strategy for proting from the March 2021 corn ltures (assuming you can store corn or sell corn short without cost). 1. Show the cash required to enter a position for 50,000 bushels (assume the initial margin is $20 per bushel) 2. Show the details of the arbitrage: the initial positions, the positions in March and the prot 3. Prove that you earn the same arbitrage prot even if the spot price of corn is 300 or 500 in March 2021. (Explain with numbers)