QUESTION 2 A textile company needs 100000 bushels of cotton in September 2020 for the upcoming season. The company would like to lock in its costs. The cotton futures price for September delivery is $6.462 per bushel today. How the company can hedge its position? (Purchase or sell) What total cost would you effectively be locking in based on the closing price of the day? Purchase; -100000 Purchase; 100000 O Sell: -646200 O Sell; 646200 Purchase; 646200 QUESTION 3 Suppose you sell six August 2020 gold futures contracts one week ago, at a price of $1560 per ounce. The contract size of the futures is 100 ounce. If the spot gold price is $1578 and the gold futures price is $1546 today, what is your total profit or loss from this futures contract? O 10800 16800 -8400 8400 - 10800