Suppose you purchase four September 2020 cotton futures contracts on this day, at a price of $5.279 per bushel. The contract size of the futures is 20 bushel. What will your profit or loss be if corn prices turn out to be $5.411 per bushel at expiration? 10.56 0.528 21.12 -10.56 -5.28

q2. A textile company needs 200000 bushels of cotton in September 2020 for the upcoming season. The company would like to lock in its costs. The cotton futures price for September delivery is $4.095 per bushel today. How the company can hedge its position? (Purchase or sell) What total cost would you effectively be locking in based on the closing price of the day? Purchase; -200000 Purchase; 819000 Sell; 819000 Purchase; 200000 Sell; -819000