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) Data on Futures Contracts, Thursday, January 8, 2015 Published, The Wall Street Journal May 9 8 28 29 30 Jan Futures Contracts ws com commodities Metal Petroleur Futures Contract Open Contact High NE Settle 09 Calle CE US) 37 500 h ch Copper High(0) 23,000 March 175 60 182 35 A 173 00 175 05 B7 09 Jan 27920 28090 2 7910 2 7960 0 0080 17 15 185 40 A 1307 175 80 177 75 20 28,098 March 27600 27765 2 7480 2 2585 0 008s 120 806 Sugar World CE US) 12 000 com Gold (OMC), 100 wat March 1464 14 99 1461 14078 428531 jan 1219 20 1219 20 May 15 20 15 30 121180 1210 60 8 70 133 15 12 152,189 Feb 1219 00 1219 40 1209 10 1210 70 8 70 219 873 Sugar Domestic (ICE US) 12 000 lbsorts per a April March 1220 20 1220 20 870 1209 80 1211 50 25 00 25 00 75,780 25 00 28 12 2493 1219 50 1219 50 May 1210 40 1212 00 3338 25 40 25 40 A 1 497 8 70 37 173 Aug 1220 00 1220 00 121450 1212 60 8 70 10,648 Cotton (ICE US 50 000 Dec 1217 00 1218 50 March 8 70 1214 00 1213 90 22,901 60 10 60 52 59 84 60 43 119 951 May WINY Gold com petros 60 76 61 11 60 40 60 91 15 34748 Feb 1218 50 1219 28 1209 25 1210 75 8 75 502 Orange Jule (ICE US) SL 000 com April Jan 1216 00 1216 75 50 1211 00 1211 50 143 10 18 20 143 10 143 10 3 75 45 364 March AN 1218 25 1218 75 A 1211 00 1212 00 8 75 35 142 10 143 70 274 141 20 10260 3 57 Palladium O 50r Interest Rate Futures Bis 10 8151001260 792 45 7 95 10 Treasury Bonds (CBT) 10 000 pat 100 Feb 818 90 818 9051290 792 45 7 95 March 148 160 140 240 147 100 140 060 10 882 093 881 June 165 120 165 170 163 200 1500 120 Platinum (NTOS Treasury Notes (OT) 100,000, 100 Jan 1220 20 1222 70 1218 00 1220 70 0 10 314 March 128 100 128 220 126 005 120 150 3 5 2 667 900 April 122350 1225 10 121480 1220 90 0 50 65 367 he 127 215 127 00 121 120 127 285 40 229 Silver CDO 1 000 SYr Trenry Notes (CUT) 500,000 do 100 16 480 16 50 16 480 16 510 0 093 91 March 119 240 119 282 119 175 1129 32 1815 691 March 16 575 16 0 16 300 16 544 0093 103,148 June 119 047 118 302 11 05 3 0 290 MUTY Suver (CC) 2500 try Sperry 2 Yr Trory Notes (OT) 100 000 1001 March 16 500 16 575 16 325 16 544 0093 97 March 109 1 30 100 150 100 120 10 145 15 1 246 072 May 16 575 0094 1 30 Day Federal Pada (CBT) 55 000 000 100 dalyer Crude Oil Light Sweet ONK L,000 Sport Jan 99 890 99 393 A 99 888 92 800 54 699 Feb 4300 49 3146 63 48 65 0 72 279,774 May 99 345 99 355 A 99 840 90 85 005 91 205 March 50 44 50 715038 49 00 0 62 229 075 10 Yr Del Int Rate Swaps (CUT) 300,000 do 100 April 49 00 $0 43 43 04 49 72 056 29 097 March 108 078 101 203 107 50 100 125 031 51 865 May 49 83 51 15 48 87 50 40 50 290 Sept 53 03 53 36 T5211 1 Month Libor (OME) $3 000 000, pes00 53 25 0 33 57,655 March 99 8273 978275 A 99 3275 99 8275 0025 256 Dec 16 60 80 61 55 9982 60 57 0 32 74198 Eurodollar(Q) $1,000,000 100 Heating od No 2pm 2 000 Spergal Jan 99 7525 75 A 99 7475 99 205 0025 60,733 Feb 17020 17256 16715 19 0263 300 053 March 99 7250 W 7300 99 7200 9 7250 DOSO L108,178 Mard 1674 169567 1 6486 0755 0189 71 550 June 99 5750 9 5000 99 5600 99 5800 0150 1077,137 Gasoline NYRBOB Omo 2 000 l Spussal Dec 99 1400 99 1750 99 1100 991400 0150 1070 443 Feb 1 3750 13 25 1 1728 1 1376 0167 90 924 Mard 13782 1 3970 1 3497 1 3766 0097 540325 Currency Futures Natural Gasom 10 000 MMR Spero Japanese Yen (CE) V2 500,000 Spe00 Feb 2 9493012 2015 2871 067 165 201 March 3412 0023 226,633 BU3443 March 2200 2 937 2 996 2819 2 865 059 3442 340 233 058 3120 0023 2 881 2949 2786 2835 040 107,228 Canadian Dollar (CNI) CAD100 000 SpeCAD May 2 883 2 950 2613 038 March 8408 3434 6452 8447 0002 93,612 2 950 3 001 June 2 860 7743 2 194 38 954 June 3417 8432 8429 0002 Oct 3 003 3 071 2 933 2 94 042 52003 British Pound (OXE) 09 500 051 2385 Ard 2841 928 038 5009 292 g 2 950 3 001 2860 2294 038 38954 June 417 HZ 3 003 3071 2933 8400 3429 0002 52003 7,743 244 042 British Pound (OK)09 500 March 1 5136 1 51485046 1 51140040 161 207 Agriculture Futures June 1 5115 1 5143 15050 1 5104 0039 602 Corn (GT) 5 000 outs perbe Swiss Franc (CM) 25 000 per March 2014 75 407 25 395 75 39 25 875 622973 March 9901 9918 62,823 90 0051 De 427 75 430 00 419 5 420 25 8 00 189 117 Ane 99209920 9345 9104 0049 1317 Ethanol (T) 2 000 gal Spergal Australian Dollar (O) AUD 100,000 AUD July 1 SOB 1598 1 498 1 506 01 274 March 80378051 7993 8041 0026 121 00 Aug 1 505 1505 1502 1 507 229 June 79887995 7952 7992 0035 341 Oats (CBT) 1 000 webu Medean Peso (CE) MONSC0,000 per MOON Mard 30400 354 85 300 75 30175 2 75 5 092 March 0691 08719 A 0666 06748 00063 130,970 305,00 305 00 303 00 100 00 2 00 1134 Ane 06729 06729 A 06724 067230043 90 Soybeana (CT) 1 000 csbe Euro (OME) KIS 000 1049 5 1055 25 A 1041 50 1052 75 1 75 7538 March 11884 1 1904 1 1809 11857 0014 March 1054 25 1061 00 A 104328 105625 401 080 so June 1 1880 1 1933 11823 11M 0044 3 188 Soybean Meal (COT) 100 partie Euro Japanese Yen (IGE US) OS COM 370 00 37210 36530 168 50 342 March 140 82 341 07 140 74 140 95 38 March 355 00 357 40 351 10 354 00 1 10 179 677 Euro British Pound (ICE US) CM 000 Soybean (CNT) 40 000 h com ph March 7852 7863A 7824 7845 0021 1036 32 67 21 15 3787 22 00 20 1 888 Baro Swiss Franc (IGES) C125 000 March 32 5 33 50 23 16 22 188 660 March 1 2004 1 200 12001 2002 2003 LOUI Rough Rice (CUT) 2 000 powt 114 00 1142 00 1139 50 1141 00 5 00 469 Index Futures Mard 1150 50 1173 00 1158 50 110 00 7 77 D Industrial Avenga (OT) What GT) 5 000, March 1732 17332 17505 17507 217 6541 March 540 25 594 50 578 50 5 50 12 25 201155 Mini DJ Industrial Average com July 500 00 501 58650 587 75 1100 17309 19524 17300 17507 217 112,37 Wheat (KC5 000 per June 17239 ir 17239 16 211 223 March 73 50 634 00 61025 420 00 115 73 903 S P 500 Indes (10 May 65 73 37 75 422 50 20 50 1175 23 March 1907 10 2034 00 105 0 2010 40 25 20 122,00 Wheat PLS) 000 June 2003 10 2012 50 1918 20 2012 40 23 30 2716 March 626 00 62800 6110615 73 416 Mini S P500(CM)0 May 62 00 612 75 620 00 22 3 9 50 15 374 March 19 50 2021 1995 75 2014 50 25 00 271 91 UN Cattle Feeder (DE) S O 1989 50 2016 50 1909 50 2012 50 23 50 Mi les 225 00 2202 223 07 225 650 950 7 72 Min SAP Midcap 400(OLE) 1000 m March 222 230 222225 218 220 125 550 15 427 March 1407 90 1420 00 1407 90 14 10 19 00 32,531 Cattle Lave (OE) 40 000 h top June 10MLIO 19 00 3 14 00 14 90 1 15 900 125 111 136 Nasdaq 100 (CNE) S 00 145 450 165 450 163 800 164 725 March 410050 12 50 74108 00 4151 50 737 Hoge Laan (O)40 000 Mini Nasdaq 100 (GMT) $20 x Indo F 25 78 00 98 7150 2 325 250 March 1515 479653 276343028 335 an April 81 200 82 575 80 700 LES 525 60 748 Ane 40040 4520 4000 44013 157 LumberORE 0 000 000 Mind Russell 2000 PIGE US) $200 le 124 128 40 319 50 127 80 7 60 266 March 115880 1172 70 11 49 1750 10 337 932 March 317 56 124 316 70 122 0 5 30 116000 1100 00 1100 00 AZN 1,096 Mall (OE) 200,000 com Mind Russell 1000(ICE US) 3000W Jan 15 45611 15 50 15 30 15 5 970 March 111720 112450 1114 70 11 22 13 70 7,897 Feb 14 15 13 14 70 14 24 5 83 U S Dollar Index (DEUS SLOBO des Cocoa (ICE US) 10 perto March 92 00 251 91 90 12 12 38 123 250 2,011 2,923 2 99 2912 10 94074 92 33921 A 92 49 40 May 2 396 2 905 2 183 25 8 48577 Source Sex Findinformation 15 01 March 14 10 Ward

Question

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) Data on Futures Contracts, Thursday, January 8, 2015 Published, The Wall Street Journal May 9 8 28 29 30 Jan Futures Contracts ws com commodities Metal   Petroleur Futures Contract Open Contact High NE Settle 09 Calle CE US) 37 500 h ch Copper High(0) 23,000   March 175 60 182 35 A 173 00 175 05 B7 09 Jan 27920 28090 2 7910 2 7960 0 0080 17 15 185 40 A 1307 175 80 177 75 20 28,098 March 27600 27765 2 7480 2 2585  0 008s 120 806 Sugar World CE US) 12 000 com Gold (OMC), 100 wat March 1464 14 99 1461 14078 428531 jan 1219 20 1219 20 May 15 20 15 30 121180 1210 60  8 70 133 15 12 152,189 Feb 1219 00 1219 40 1209 10 1210 70  8 70 219 873 Sugar Domestic (ICE US) 12 000 lbsorts per a April March 1220 20 1220 20  870 1209 80 1211 50 25 00 25 00 75,780 25 00 28 12 2493 1219 50 1219 50 May 1210 40 1212 00 3338 25 40 25 40 A 1 497  8 70 37 173 Aug 1220 00 1220 00 121450 1212 60  8 70 10,648 Cotton (ICE US 50 000 Dec 1217 00 1218 50 March  8 70 1214 00 1213 90 22,901 60 10 60 52 59 84 60 43 119 951 May WINY Gold com  petros 60 76 61 11 60 40 60 91 15 34748 Feb 1218 50 1219 28 1209 25 1210 75  8 75 502 Orange Jule (ICE US)  SL 000 com April Jan 1216 00 1216 75 50 1211 00 1211 50 143 10 18 20 143 10 143 10  3 75 45 364 March AN 1218 25 1218 75 A 1211 00 1212 00  8 75 35 142 10 143 70 274 141 20 10260 3 57 Palladium O 50r Interest Rate Futures Bis 10 8151001260 792 45  7 95 10 Treasury Bonds (CBT) 10 000 pat 100 Feb 818 90 818 9051290 792 45  7 95 March 148 160 140 240 147 100 140 060 10 882 093 881 June 165 120 165 170 163 200 1500 120 Platinum (NTOS Treasury Notes (OT) 100,000, 100 Jan 1220 20 1222 70 1218 00 1220 70  0 10 314 March 128 100 128 220 126 005 120 150 3 5 2 667 900 April 122350 1225 10 121480 1220 90  0 50 65 367 he 127 215 127 00 121 120 127 285 40 229 Silver CDO 1 000  SYr  Trenry Notes (CUT) 500,000 do 100  16 480 16 50 16 480 16 510  0 093 91 March 119 240 119 282 119 175 1129 32 1815 691 March 16 575 16 0 16 300 16 544 0093 103,148 June 119 047 118 302 11 05 3 0 290 MUTY Suver (CC) 2500 try   Sperry 2 Yr  Trory Notes (OT) 100 000 1001 March 16 500 16 575 16 325 16 544 0093 97 March 109 1 30 100 150 100 120 10 145 15 1 246 072 May 16 575 0094 1 30 Day Federal Pada (CBT) 55 000 000 100 dalyer Crude Oil Light Sweet ONK L,000 Sport Jan 99 890 99 393 A 99 888 92 800 54 699 Feb 4300 49 3146 63 48 65 0 72 279,774 May 99 345 99 355 A  99 840 90 85  005 91 205 March 50 44 50 715038 49 00 0 62 229 075 10 Yr  Del  Int  Rate Swaps (CUT) 300,000 do 100 April 49 00 $0 43 43 04 49 72 056 29 097 March 108 078 101 203 107 50 100 125  031 51 865 May 49 83 51 15 48 87 50 40 50 290 Sept 53 03 53 36 T5211 1 Month Libor (OME) $3 000 000, pes00 53 25 0 33 57,655 March 99 8273 978275 A 99 3275 99 8275 0025 256 Dec 16 60 80 61 55 9982 60 57  0 32 74198 Eurodollar(Q) $1,000,000 100  Heating od No  2pm 2 000  Spergal  Jan 99 7525 75 A 99 7475 99 205 0025 60,733 Feb 17020 17256 16715 19 0263 300 053 March 99 7250 W 7300 99 7200 9 7250 DOSO L108,178 Mard 1674 169567 1 6486 0755 0189 71 550 June 99 5750 9 5000 99 5600 99 5800 0150 1077,137 Gasoline NYRBOB Omo 2 000 l  Spussal Dec 99 1400 99 1750 99 1100 991400 0150 1070 443 Feb 1 3750 13 25 1 1728 1 1376  0167 90 924 Mard 13782 1 3970 1 3497 1 3766  0097 540325 Currency Futures Natural Gasom 10 000 MMR Spero Japanese Yen (CE) V2 500,000  Spe00 Feb 2 9493012 2015 2871  067 165 201 March 3412 0023 226,633 BU3443 March 2200 2 937 2 996 2819 2 865  059  3442 340 233 058 3120 0023 2 881 2949 2786 2835  040 107,228 Canadian Dollar (CNI) CAD100 000 SpeCAD May 2 883 2 950 2613  038 March 8408 3434 6452 8447 0002 93,612 2 950 3 001 June 2 860 7743 2 194 38 954 June 3417 8432 8429   0002 Oct 3 003 3 071 2 933 2 94  042 52003 British Pound (OXE) 09 500 051 2385 Ard 2841 928  038 5009 292 g 2 950 3 001 2860 2294  038 38954 June 417 HZ 3 003 3071 2933 8400 3429 0002 52003 7,743 244  042 British Pound (OK)09 500 March 1 5136 1 51485046 1 51140040 161 207 Agriculture Futures June 1 5115 1 5143 15050 1 5104   0039 602 Corn (GT) 5 000 outs perbe Swiss Franc (CM) 25 000 per March 2014 75 407 25 395 75 39 25  875 622973 March 9901 9918 62,823 90 0051 De 427 75 430 00 419 5 420 25  8 00 189 117 Ane 99209920 9345 9104 0049 1317 Ethanol (T) 2 000 gal  Spergal Australian Dollar (O) AUD 100,000 AUD July 1 SOB 1598 1 498 1 506  01 274 March  80378051 7993 8041 0026 121 00 Aug 1 505 1505 1502 1 507 229 June  79887995 7952  7992 0035 341 Oats (CBT) 1 000  webu Medean Peso (CE) MONSC0,000 per MOON Mard 30400 354 85 300 75 30175  2 75 5 092 March 0691 08719 A 0666 06748 00063 130,970 305,00 305 00 303 00 100 00  2 00 1134 Ane 06729 06729 A 06724 067230043 90 Soybeana (CT) 1 000 csbe Euro (OME) KIS 000 1049 5 1055 25 A 1041 50 1052 75 1 75 7538 March 11884 1 1904 1 1809 11857  0014 March 1054 25 1061 00 A 104328 105625 401 080 so June 1 1880 1 1933 11823 11M   0044 3 188 Soybean Meal (COT) 100 partie Euro Japanese Yen (IGE US) OS COM 370 00 37210 36530 168 50 342 March 140 82 341 07 140 74 140 95   38 March 355 00 357 40 351 10 354 00  1 10 179 677 Euro British Pound (ICE US) CM 000 Soybean (CNT) 40 000 h com ph March 7852 7863A 7824 7845 0021 1036 32 67 21 15 3787 22 00 20 1 888 Baro Swiss Franc (IGES) C125 000 March 32 5 33 50 23 16 22 188 660 March 1 2004 1 200 12001 2002 2003 LOUI Rough Rice (CUT) 2 000 powt 114 00 1142 00 1139 50 1141 00 5 00 469 Index Futures Mard 1150 50 1173 00 1158 50 110 00 7 77 D Industrial Avenga (OT) What GT) 5 000, March 1732 17332 17505 17507 217 6541 March 540 25 594 50 578 50 5 50 12 25 201155 Mini DJ Industrial Average com July 500 00 501 58650 587 75  1100 17309 19524 17300 17507 217 112,37 Wheat (KC5 000 per June 17239 ir 17239 16 211 223 March 73 50 634 00 61025 420 00 115 73 903 S P 500 Indes (10 May 65 73 37 75 422 50 20 50 1175 23 March 1907 10 2034 00 105 0 2010 40 25 20 122,00 Wheat PLS)  000 June 2003 10 2012 50 1918 20 2012 40 23 30 2716 March 626 00 62800 6110615 73   416 Mini S P500(CM)0 May 62 00 612 75 620 00 22 3  9 50 15 374 March 19 50 2021  1995 75 2014 50 25 00 271 91 UN Cattle Feeder (DE) S O  1989  50 2016 50 1909 50 2012 50 23 50 Mi les 225 00 2202 223 07 225 650 950 7 72 Min SAP Midcap 400(OLE) 1000 m March 222 230 222225 218  220 125   550 15 427 March 1407 90 1420 00 1407 90 14 10 19 00 32,531 Cattle Lave (OE) 40 000 h top June 10MLIO   19 00 3 14 00 14 90 1 15 900  125 111 136 Nasdaq 100 (CNE) S 00 145 450 165 450 163 800 164 725 March 410050 12 50 74108 00 4151 50 737 Hoge Laan (O)40 000 Mini Nasdaq 100 (GMT) $20 x Indo F 25  78 00 98 7150 2 325 250 March 1515 479653 276343028 335 an April 81 200 82 575 80 700 LES 525 60 748 Ane 40040 4520 4000 44013 157 LumberORE 0 000   000 Mind Russell 2000 PIGE US) $200 le 124 128 40 319 50 127 80 7 60 266 March 115880 1172 70 11 49 1750 10 337 932 March 317 56 124  316 70 122 0 5 30 116000 1100 00 1100 00 AZN 1,096 Mall (OE) 200,000 com Mind Russell 1000(ICE US) 3000W Jan 15 45611 15 50 15 30  15 5 970 March 111720 112450 1114 70 11 22  13 70 7,897 Feb 14 15 13 14 70 14  24 5 83 U S  Dollar Index (DEUS SLOBO des Cocoa (ICE US) 10 perto March 92 00 251 91 90 12 12 38 123 250 2,011 2,923 2 99 2912 10 94074 92 33921 A 92 49 40 May 2 396 2 905 2 183 25 8 48577 Source Sex Findinformation 15 01 March 14 10 Ward

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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.

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