Please help with 7,9 and 10

7. It is currently June, and a our manufacturer plans to purchase 10,000 bushels of wheat in December. Currently, a December wheat contract is trading at 350/bu. In December, wheat costs 400/bu. in the local cash market and a December wheat contract is also trading at 400/bu. Fill in the table given here to describe the actions this manufacturer will take in the cash & futures exchange to hedge against a higher-than- expected price, the gain/loss the manufacturer will experience in these markets, and the net price that the manufacturer will pay for wheat. Time Period Cash Market Futures Exchange June December Gaim'loss Net Price 8. Redo the hedging problem from Question 7 with the following changes. The manufacturer plans to buy wheat in November. The cash price is currently 400/bu. and is still 400/bu. in November. The December futures contract price is currently 350/bu. and is 395/bu. in November. Time Period Cash Market Futures Exchange Basis June November Gainfloss Net Price 9. Dene cross-hedging. When is cross-hedging normally used? 10. A sorghum producer wants to use com contracts to hedge against the possibility of low prices later in the year. She plans to sell 50,000 bushels of sorghum. Based on her business records, the standard deviation of changes in sorghum prices is 0.01, the standard deviation of changes in com futures prices is 0.015, and the correlation between these two prices is 0.975. How many corn contracts should this producer purchase to hedge her sorghum price