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Suppose that in the 5 days following a farmers sale of December wheat futures at a futures price of $9.22, the futures price is: Day

Suppose that in the 5 days following a farmers sale of December wheat futures at a futures price of $9.22, the futures price is:

Day 1 2 3 4 5
Price $ 9.22 $ 9.28 $ 9.09 $ 8.89 $ 8.99

At the end of day 5, the farmer decides to quit wheat farming and buys back his futures contract. (Hint: Contract size = 8,200 bushels)

1. What payments are made between the farmer and the exchange on each day? (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

Payments
a. Day 1
b. Day 2
c. Day 3
d. Day 4
e. Day 5

2. What is the total payment over the 5 days? (Do not round intermediate calculations.)

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