Suppose today is January 8, 2015, and your firm produces breakfast cereal and needs 80,000 bushels of corn in March 2015 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might rise between now and March. Use Table 25.2

a. What is the total price you are locking in for the 80,000 bushels of corn based on the day's closing price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Total cost $

b. Suppose corn prices are $4.07 per pound in March. What is the profit or loss on your futures position? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) (Click to select) $

Table 25.2 Data on Futures Contracts, Thursday, January 8, 2015 Published, The Wall Street Journal. 3.0 . Futures Contracts WSI.com/commodities Metal & Petroleum Futures Contract Open Open High Milo tow Settle Chg interest Contract Open Open High hilo low Settle Chg interest Coffee (ICE-US)-37,500 lbs. cents par lb. March 175.60 182.85 A 173.00 175,05 .15 87.439 Copper-High (CMX)-25,000 lbs. Sper lb. May 2.7920 2.8090 Jan 20 2.7910 2.7960 -0.0080 178.15 185.40 A 175.80 1,307 177.75 28,098 March 2.7600 2.7765 2.7480 2.7585 -0.0085 120,806 Sugar-World [ICE-US)-112,000 lbs, cents per lb. March 14.94 14.99 14.61 14.78 Gold (CMX)-100 troyce: $ per troy az -09 428,531 May 14.97 15.20 15.30 Jan 15.12 -07 152, 189 1219.20 1219.20 1211.80 1210.60 -8.70 133 Feb 1219.00 1219.40 1209.10 1210.70 -8.70 219,873 Sugar-Domestic (ICE-US)-112,000 lbs, cents per b. April March 1209.80 1211.50 25.00 25.00 25.00 -02 25.12 1220.20 1220.20 2493 -8.70 75,780 May 25.40 June .05 25.40 25.40 A 1.497 1219.50 1219.50 1210.40 1212.00 -8.70 25.38 37,173 1220.00 1220.00 Aug 1214.50 1212.60 -8.70 10,648 Cotton (ICE-US)-50,000 lbs., cents par lb. Dec 1217.00 1218.50 1214.00 1213.90 -8.70 22,901 March 60.10 60.52 59.84 60.43 .23 119.551 May 60.40 60.76 61.11 miNY Gold (CMX)- 30 tray cz: Sper troy 60.91 15 34,748 Feb 1218.50 1219.25 1209.25 1210.75 -8.75 502 Orange Juice (ICE-US)-15.000 lbs omts per lb. April Jan 143.10 143.10 45 .60 1216.00 1216.75 364 1211.00 1211.50 -8.75 143.10 143.20 March June .35 1218.25 1218.75 A 1211.00 1212.00 -8.75 142.10 143.70 141 20 142.60 274 8,857 Palladium (NYM-90 troy os: $ per troyce. Interest Rate Futures Jan 815.10 815.10 812.60 792.45 -7.95 10 Treasury Bonds (CBT) $100,000; pts Winds of 100% Feb 818.90 818.90 812.90 792.45 -7.95 na. March 148-160 148-240 147.100 148-060 ) 1.0 882,093 June B02.80 802.80 787.75 793.20 -7.85 881 June 165-120 165-170 163-290 165-030 5.0 1.747 Platinum (NYM-Stroy 02:$par troy os. Treasury Notes (CBT) $100,000; pts 32nds of 100% Jan 1220.20 1222.70 1218.00 1220.70 -0.10 314 March 128-160 128-220 128-005 128-150 3.5 2,667,999 April 1223.50 1225.10 1214.80 1220.90 -0.50 65,367 June 127-215 127-300 127-120 127-255 4.0 3,229 Silver (CMX) 5,000 troy os: $ per troy oz. 5 Yr. Treasury Notes (CBT) $100,000; pts 52nds of 100% Jan 16.480 16.550 A 16.480 16.510 -0.093 91 March 119-240 119-282119-175 119-255 3.2 1,815,691 March 16.575 16.660 16.300 16.544 -0.093 103,248 June .. 119-047 118-302 119-045 290 miNY Silver (CMK-2500 troy : $ per troyer 2 Yr. Treasury Notes (CBT) $200,000; pts 52nds of 100% March 16.500 16.575 16.325 16.544 -0.093 97 March 109-130 109-150109-120 109-145 1.5 1.246,072 May 16.575 -0.094 1 30 Day Federal Funds (CBT)-$5,000,000: 100-daily avg. Crude Oil, Light Sweet (NYMO-1,000 bbls. Sperbol Jan 99.890 99.893 A 99.888 99.888 54,698 Feb 48.00 49.317 46.83 48.65 0.72 279,774 May 99.845 99.855 A *99.840 99.845 .005 98.205 March 50.44 50.71 50.38 49.08 0.62 229,075 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 1004 April 49.00 50.43 7 48.04 49.72 0.56 79,097 March 108.078 108.203 107.750 108.125 -.031 51,865 May 49.83 51.15 7 48.87 50.48 0.51 50.290 1 Month Libor (CME) $5,000,000; pts of 2004 Sept 53.03 53.86 53.86 1 52.11 53.25 0.33 57,655 March 99.8275 99.8275 A 99.8275 99.8275 .0025 256 Dec '16 60.80 61.55Y 59.82 60.57 -0.32 74,198 Eurodollar (CME) $1,000,000, pts of 100% Heating Oil No. 2 ONYMO-42,000 gal: S pergal Jan 99.7525 99.7525 A 99.7475 99.7475-0025 69,733 Feb 1.7020 1.7256 1.6715 1.6999 -.0263 100.053 March 99.7250 99.7300 99.7200 99.7250 .0050 1,106,176 March 1.6784 1.6966 1.6486 1.6755-0189 71.550 June 99.5750 99.5900 99.5600 99.5800 .0150 1,077,137 Gasoline-NY RBOB ONYM-42,000 gal: $ pergal. Dec 99.1400 99.1750 99.1100 99.1400 .0150 1,070 443 Feb 1.3750 1.3825 1.3728 1.3376 -0167 90.924 March 1.3782 1.3970 1.3497 1.3766 -0097 54.325 Currency Futures Natural Gas (NYM)-10,000 MMB: Sper MMBtu. Japanese Yen (CME)- V12,500,000: S per 100W Feb 2.949 3.012 2825 2.871 -067 165,201 March .8439 8443 8362 8412 - 0023 .8412 - 0023 226,633 March 2.937 2.996 2819 2.865 -059 233,058 June .8442 8443 8374 8420 -.0023 2,206 April 2.881 2.949 2.796 2.835 -040 107,228 Canadian Dollar (CME) CAD 100,000; Sper CAD May 2.883 2.958 2.813 2.849 - 038 92.948 March .84348452 8408 .8447-.0002 93,612 June 2.950 3.001 2.860 2.894 -038 38,954 June .8417 8432 8400 .8429-0002 7,743 Oct 3.003 3.071 2.933 2.964 -042 52.003 British Pound (CME)-E62,500 $ per March 1.5136 1.5148 15046 1.5114 - 0040 161,207 Agriculture Futures June 1.5115 1.5143 Y 15050 1.5104 - 0039 602 Corn (CBT) 5.000 be;cents per bu. Swiss Franc (CME)-CHF 125,000 $ per CHF March 404.75 407.25 395.75 396.25 -8.75 622,973 March .9901 .9918 Y .9839 .9879 --0051 62,828 Dec 427.75 430.00 419.75 420.25 -3,00 189,117 June .992099209865 .9904 -.0049 1,317 Ethanol (CET)-29,000 gal: Spergal Australian Dollar (CME) AUD 100,000 $ per AUD July 1.508 1.508 1.498 1.506 --01 274 March .8037.80517993 8041 -.0026 121,806 Aug 1.505 1.505 Y 1.502 1.507 -.01 229 June 7988.7995Y 7952 .7992-0025 341 Oats (CBT)-5,000 bu..ornits per bu. Mexican Peso (CME)-MXN 500,000 $ per MXN March 304.00 304.25 300.75 301.75 -2.75 5,892 March .06691.06779 A .06676 .06768 00063 130,970 May 305.00 305.00 303.00 304.00 -2.00 1,324 June .06729 06729 A 06724 .06728.00063 90 Soybeans (CBT) 5,000 bw.cants per bu. Euro(CME)-6125,000: Spare Jan 1049.75 1055.25 A 1044.50 1052.75 1.75 7,538 March 1.1884 1.1904 7 1.1809 1.1857 -.0064 403,080 March 1054.25 1061.00 A 1048.25 1056.25 .50 292,948 June 1.1880 1.1933 1.1823 1.1869 -.0064 3,168 Soybean Meal (CBT)-100 tons: Sparton. Euro/Japanese Yen (ICE-US)-6125.000; per Jan 370.90 372.10 A36530 368.50 -2.30 3,942 March 140.82 141.67 140.74 140.95 - 38 524 March 355.00 357.40 351.10 354.00 -1.10 179,677 Euro/British Pound (ICE-US) E125,000:E per Soybean Oil (CBT)-60,000 lbs., cents per lb. March 7852 7863 A 7824 7845-0021 1,086 Jan 32.67 33.15 32.67 32.98 29 Euro/Swiss Franc (ICE-US)-125.000;CHF por 6 March 32.85 33.50 A 32.69 33.16 -29 188,660 March 1.2004 1.2005 Y 1.2001 1.2002-0003 1,031 Rough Rice (CBT) 2,000 cwt..$ per cwt. Jan 5.00 Index Futures 1141.00 1142.00 1139.50 1141.00 469 March 1159.50 1173.00 A 1158.50 1165.00 450 7,778 DJ Industrial Average (CBT)-$10 x index Wheat (CBT) 5,000 bu, onts per bu... March 17332 17332 1750517507 217 6,541 March 594.25 594.50 579.50 -12.25 201,155 Mini DJ Industrial Average (CBT) $Se index July 600.00 601.25 586.50 587.75 587.75 -11.00 65,421 March 17309 17524 17300 17507 217 112,371 Wheat (KC)-5.000 bu, cents per ba. June 17239 17444 17239 17434 217 223 March 633.50 634.00 619.25 620.00 -11.25 73,903 S&P 500 Index (CME) $250 x index May 635.75 637.75 62250 623.50 -11.75 22,552 March 1997.10 2024.00 1995.80 2019.60 25.20 122.933 Wheat (MPLS) 5,000 bucents per bu. June 2003.10 2012.50 1998.20 2012.40 25.30 2.776 March 626.00 628.00 A 613.50 615.75 -9.75 36,416 Mini S&P 500 (CME)-$50 x Index May 632.00 632.75 A 620.00 622.25 -9.50 15,374 March 1996.50 2023.75 1995.75 2019.50 25.00 2,738,793 Cattle-Feeder (CME)-50,000 lbs. cents per lb June 1989.50 2016.50 1989.50. 2012.50 25.50 9,661 Jan 225.800 226.275 223.075 225.650 .950 7,732 Mini S&P Midcap 400 (CME)-$100 x indos March 222.200 222.225 218.375 220.325 - 550 15,427 March 1407.90 1478.00 1407.90 1426.10 19,60 82,531 Cattle-Live (CME) 40,000 lbs.:cents per lb June 1424.10. 19.60 3 Feb 166.400 166.750 164.975 165.900 -125 111,136 Nasdaq 100(CME) $100 x index April 165.450 165.450 163,800 164.725 -.275 85,028 March 4108.50 4162.50 74108.00 4151.50 49.25 6,737 Hogs-Lean (CME) 40,000 lbs, cents per la Mini Nasdaq 100(CME)-$20 x Index Feb 78.600 79.875 778.150 79.325 .750 85,568 March 4105.5 41633 4102.8 4151.5 49.3 335,423 April 81.200 82.575 80.700 81.875 525 60,748 June 4094.0 4152.0 4094.0 4140.8 493 157 Lumber (CME)-110,000 bd. It. Sper 1,000 bd.. Mini Russell 2000 (ICE-US) $100 x index Jan 324.50 328.40 319.50 327.30 7.60 266 March 1158.80 1172.70 1158.40 1171.60 14.70 337,932 March 317.50 324.90 Y316.70 322.70 5.30 3,512 June 1160.00 1160.00 1160.00 1167.80 14.70 7,096 Milk (CME) 200,000 lbs.,cants per lb. Mini Russell 1000 (ICE-US) $100 index Jan 15.65 16.11 A 15.58 15.80 15 5,978 March 1117 20 1124.50 1114.70 1122.80 13.70 7,897 Feb 14.90 15.13 14.70 14.94 .24 5,383 U.S. Dollar Index (ICE-US)-SL000 x index Cocoa (ICE-US)-10 metric tons Sperton. March 92.00 9251 A 91.90 92.12 38 123,258 March 2,911 2,923 2,899 2,912 10 June 94,074 92.33 9284 A 92.49 92.30 .40 1,930 May 2,896 2,906 2,883 2.895 8 48,577 Source: SIX Financial Information 1.888