QUESTION $5$It is now September $2015.$ A company anticipates that it will purchase $1$ million pounds of copper in July $2016.$ The company has decided to use the futures contracts traded in the COMEX division of the CME Group to hedge its risk. One contract is for the delivery of $25,000$ pounds of copper. The company's policy is to hedge $100\%$ of its exposure. Contracts with maturities up to $13$ months into the future are considered to have sufficient liquidity to meet the company's needs.The following contracts are available on copper $($prices are in CENTS per pound$).$Date"Sep $15""$Jan $-16""$Jul $-16$"Spot Price$320324323$Feb $2016$ futures price$320\mathrm{.}3324\mathrm{.}1$Aug $2016$ futures price$325\mathrm{.}2323\mathrm{.}86$ pointsSi$($a$)$ In September $2015,$ how many contracts need to be entered? Enter whole number of contracts $->($b$)$ For part $($a$)$ indicate if the position is a long or short position. Enter short or long $($use all lowercase characters with no spaces$)->($c$)$ Calculate the total Profit or Loss from the futures hedges in July $2016$ when the hedges are closed. Note you want the total amount accounting for the size of the position, not a profit loss per pound of copper. Enter answer in dollars $($NOT CENTS$)$ and do not use the $ sign or commas. $->($d$)$ Calculate the net total effective cost of purchasing $1$ million pounds of copper on July $2016.$ Enter answer in dollars and do not use the $ sign or commas.