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Suppose today is February 10, 2017, and your firm produces breakfast cereal and needs 210,000 bushels of corn in May 2017 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might rise between now and May. Use Table 23.1 a. What total cost would you effectively be locking in based on the closing price of the day? (Round your answer to the nearest whole number, e.g., 32.) b. Suppose corn prices are $3.50 per bushel in May. What is the profit or loss on your futures position? (Enter your answer as a positive number. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Total cost b. 3.350 3.392 .020 93,442 Agriculture Futures Corn (CBT)-5,000 bu; cents per bu. March 369.50 372.75 367.50 369.50 -1.25 500,405 May 377.25 380.25 375.25 377.25 -1.25 346,739 Oats (CBT)-5,000 bu; cents per bu. March 256.00 257.50 250.00 254.50 -50 4,155 246.00 253.00 May 248.25 254.00 Soybeans (CBT)-5,000 bu; cents per bu. 3.00 3,027 1050.50 -8.25 248,998 1061.50 -7.75 210,368 338.40 -2.80 126,399 March 1057.00 1061.50 1045.00 May 1067.25 1071.50 1055.50 Soybean Meal (CBT)-100 tons; $ per ton. March 340.70 341.60 335.90 May 344.80 345.80 340.10 Soybean Oil (CBT)-60,000 lbs; cents per lb. March 34.67 34.98 34.47 May 34.96 35.26 34.76 342.60 -2.70 122,484 34.67 -.02 123,991 34.95 -.03 118,319 3 TABLE 23.1 Sample Wall Street Journal Futures Price Quotations Metal & Petroleum Futures Contract Settle Chg Open interest 2.6480 -0.0125 672 Open High hilo Low Copper-High (CMX)-25,000 lbs; $ per lb. Feb 2.6735 2.6735 2.6715 March 2.6660 2.6765 2.6410 Gold (CMX)-100 troy oz; $ per troy oz. Feb 1239.40 1243.50 1226.90 April 1242.70 1246.20 1226.10 2.6535 -0.0130 120,434 1235.10 -2.50 1,387 1236.80 -2.70 288,888 June 1246.10 1249.00 1230.00 1240.00 -2.70 63,531 18,296 Aug 1250.10 1252.00 1235.10 1243.10 -2.80 1249.20 -2.70 29,516 1259.00 -2.50 4,419 Dec 1254.00 1256.90 1239.00 June 18 1266.00 1266.00 1254.80 Palladium (NYM)-50 troy oz; $ per troy oz. Feb 732.85 732.85 732.85 March 770.60 778.80 768.00 June 771.00 780.00 770.40 772.60 2.80 1 772.55 2.80 22,948 774.00 2.85 6,503 775.10 775.00 3.60 17 Sept 775-30 777.00 Platinum (NYM)-50 troy oz; $ per troy oz