Suppose that the manager did place the hedge using the March 2021 contract. March 2021 corn futures are trading at $4.074/bushel while May 2021 corn futures are trading at $4.084/bu. She knows that cash prices in February are usually (i.e., most years) approximately 15 cents below March futures prices and 25 cents below May futures prices. What net price does she expect to pay if she places this hedge?

a. $3.92/bu b. $4.02/bu c. $4.12/bu d. $4.03/bu e. None of the above f. Not enough information

Please explain, including any assumptions you make on the way.