Suppose today is March 27, 2018, and your firm produces breakfast cereal and needs 135,000 bushels of corn in July 2018 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might go up between now and July. Use Table 25.2

a.What is the total price are you locking in for the 135,000 bushels of corn based on the day's closing price?(Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

b.Suppose corn prices are $4.29 per bushel in July. 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 the nearest whole number, e.g., 32.)