Phoenix Motors wants to lock in the cost of 10,000 ounces of platinum to be used in next quarter's production of catalytic converters. It buys 3-month futures contracts for 10,000 ounces at a price of $810 per ounce. a. Suppose the spot price of platinum falls to $755 in 3 months' time. Does Phoenix have a profit or loss on the futures contract? b-1. Has it locked in the cost of purchasing the platinum it needs? b-2. What is the total lock-in cost? c. If the spot price of platinum increases to $955 after 3 months, does Phoenix have a profit or loss on the futures contract? d. What is the total lock-in cost? Yes a. Phoenix Motors has a Loss on the futures contract equal to b-1Has it locked in the cost of purchasing the platinum it needs? b-2 Total cost C Phoenix Motors has a Profit on the futures contract equal to d Total cost Phoenix Motors wants to lock in the cost of 10,000 ounces of platinum to be used in next quarter's production of catalytic converters. It buys 3-month futures contracts for 10,000 ounces at a price of $810 per ounce a. Suppose the spot price of platinum falls to $755 in 3 months' time. Does Phoenix have a profit or loss on the futures contract? b-1. Has it locked in the cost of purchasing the platinum it needs? b-2. What is the total lock-in cost? c. If the spot price of platinum increases to $955 after 3 months, does Phoenix have a profit or loss on the futures contract? d. What is the total lock-in cost? Answer is not complete NTP b- 1 Yes Phoenix Motors has a LOS on the futures contract equal to Has it locked in the cost of purchasing the platinum it needs? Total cost Phoenix Motors has Profit on the futures contract equal to Total cost 2 a d