stion 7 et wered ed out of stion A retiner has 250 tons of CPO in inventory. He will be holding this over the next 3 months. He intends to protect himself from a fall in the price of CPO which could cause him losses since his output price is tied to CPO prices, he has the following information Current Inventory = 250 tons Spot price = $1100 per ton R = 6% per year Annual storage cost = $ 44 per ton (4% per annum) 3-month CPO futures - $ 112653 if the refiner wants to protect him from price falls what is his net gain from the position if the CPO prices talls by 20% at maturity 55 000 1.632.5 3882.5 4638750 CD P