Question 4 (4 marks) (a) On March 1, the price of a commodity is $1,000, and the December futures price is $1,015. On November 1, the price is $980, and the December futures price is $981. A producer of the commodity entered into a December futures contracts on March 1 to hedge the sale of the commodity on November 1. The producer closed out its positior on November 1. What is the effective price (after taking account of hedging) received by the company for the commodity? (3 marks) (b) Please explain the convergence of spot price and futures price. (1 mark)