Risk Management -Futures and Options 16. Producer Hedge (Feeding Cattle-Short Hedge) (5 pts): Suppose a cattle farmer is feeding cattle to sell later (Feb to June). Given the following information calculate their net gains or losses in futures and their net selling price per hundredweight. Futures Futures Price Cash Cash Price February Obtains a selling futures contract $75/bundredwt June Obtains a buying futures contract $70/hundredwt Sells $67/hundredwt Brokerage fees are $0.10 per hundredwt a. Gains or losses in futures b. Net selling price *Gains or lesses in futures=EP. EP. Net Price=rash + Gains or losses in Futures