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Six months from now, Farmer Larry will harvest 25,000 bushels of corn. In doing so, he incurs costs of $111,000. The current spot price of
Six months from now, Farmer Larry will harvest 25,000 bushels of corn. In doing so, he incurs costs of $111,000. The current spot price of corn is $4.90 per bushel, and the six-month forward price is $5.05. Suppose Larry decides to sell corn forward. What total profit would he earn if the market price of corn at harvest time is $4.30, $4.70, $5.10, and $5.50, respectively?
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