Suppose a farmer is expecting that her crop of oranges will be ready for

harvest and sale as150,000

pounds of orange juice in3

months time. Suppose each orange juice futures contract is for15,000

pounds of orange juice, and the current futures price isF

0

=118.65

cents-per-pound.

Assuming that the farmer has enough cash liquidity to fund

any margin calls, what is the risk-free price that she can guarantee herself.

Please submit your answer in cents-per-pound rounded to two decimal places. So for example, if your answer is123.456

, then you should submit an answer of123.47