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Suppose on March 1, 2021 you long 2.5 million bushels of corn decided to hedge using June futures. On that day you observed the following

Suppose on March 1, 2021 you long 2.5 million bushels of corn decided to hedge using June futures. On that day you observed the following futures contract prices on March 1, 2021:

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c. Given that on May 12, 2021 you observed the following market quotes: CORN Futures Contract (one contract = 5000 bushels; price = cents per bushel) Spot price 245 % June futures price 248 34 September futures price 2524 1. What is the net gain on your futures position? 2. What is the net gain on your long position? 3. Would you trade out of your futures position? Explain. 4. What is your realized selling price if you trade out of your positions? c. Given that on May 12, 2021 you observed the following market quotes: CORN Futures Contract (one contract = 5000 bushels; price = cents per bushel) Spot price 245 % June futures price 248 34 September futures price 2524 1. What is the net gain on your futures position? 2. What is the net gain on your long position? 3. Would you trade out of your futures position? Explain. 4. What is your realized selling price if you trade out of your positions

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