On December 27, 2020, a gold mining company knows it will need to sell 600 ounces of gold some time in March 2021. The current April gold futures price is $1,820 /oz. Each gold futures contract is on 100 ounces of gold. Its hedging strategy is as follows:

1. Short 6 April gold futures contract on December 27, 2020 at $1,820 /oz.

2. Close out the position when the company sells the gold.

a) Suppose the company sell the gold on March 10 when the spot price of gold is $1,806 and the April gold futures price is $1,795. What is the companys effective proceeds from selling the gold?

b) Suppose the company sell the gold on March 23 when the spot price of gold is $1,875 and the April gold futures price is $1,881. What is the companys effective proceeds from selling the gold?