Suppose your firm produces breakfast cereal and needs 130,000 bushels of corn in December 2020 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 December. What total cost would you effectively be locking in based on the closing price of the day.

a. What total cost would you effectively be locking in based on the closing price of the day?

b. Suppose corn price are $3.15 per bushel in December. What is the profit or loss on your futures position?

a.	Total Cost	$
b.	Loss	$

Agriculture Futures Corn (CBT)-5,000 bu; cents per bu July 320.00 322.00 318.00 Dee 332.25 334.00 330.75 320.75 332.75 1.50 .75 603,507 346,236