Question 1 It is November 28th and the May 24 soybean futures are trading at 14686. A 1400 May 24 soybean put is trading at 372 and a1400 May 24 soybean call is trading at 92'3. A 1520 May 24 soybean put is trading at 735 and a 1520 May 24 soybean call is trading at 464. a) Suppose you will be buying soybeans in May 2024, and you hedged your soybean purchase on November 28th with the May 24 soybean futures contract. When you buy your soybeans the May 24 soybeans futures are 1506'2 and you pay 1506'2 cash for the soybeans. How much is your basis? Calculate the net purchase price for the soybeans. (10 points) b) Suppose you set a fence for your soybean purchase on November 28th. Calculate your maximum purchase price. Calculate your minimum purchase price. Use the basis in part a. (10 points) c) When you buy your soybeans, the May 24 soybeans futures are 1506'2 and you pay 1471'2 cash for the soybeans. You had set your fence in part b. How much was your net gain/loss on your put? How much was your net gain/loss on your call? What was your net purchase price? (15 points)