Question 5 An elevator operator typically purchases huge amounts of grain from farmers. Assume the following prices. Date Spot Price /Bu March Futures Price September 1 $2.10 $2.34 October 1 $2.05 $2.20 November 1 $2.20 $2.38 It costs the elevator $0.05/Bu/month to store the grain. 9 MB An elevator purchases grain from a farmer on September 1. He has no immediate buyer, so he puts it into storage and hedges. On November 1 he has a buyer at one cent over the spot price. He thus sells his grain at that price and immediately liquidates his hedge. What is the total profit per bushel, from both the spot and futures markets, of the elevator operator? a gain of 4 cents a loss of 3 cents none of these other answers are correct a loss of 5 cents 10:34