Orange Ltd nees to souce funds for an up and coming project in 8 months time.

to fund this project Orange Ltd decides to sell their 20 000 shares in Meridian Ltd. Orange Lid is concerned about price fluctuations over the next 8 mthe They enter a futures contract on the Meridian shares where Orange Ltd takes a sell position.

The curent market price of the Meridian Ltd shares is $35.00 per share and the futures contract states that the price of the future is $33.00. 8 months time the market price of the Mendan shares has fallien to $32.00 per share and the price of a future with Meridian is $2950.

REQUIRED

calculate the total ganes and losses Orange us receives from the transaction Show your workings