Suppose your firm produces breakfast cereal and needs 170,000 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. Use Table 23.1. a. What total cost would you effectively be locking in based on the closing price of the day? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. Suppose corn prices are $3.23 per bushel in December. What is the profit or loss on your futures position? (Do not round intermediate calculations and enter your answer as a positive value rounded to the nearest whole number, e.g., 32.) TABLE 23.1 Sample Wall Street Journal Futures Price Quotations Gold (CMX) 100 troy 0z; \$ per troy oz Palladium (NYM) -50 troy oz; \$ per troy o2 MayJuneSeptDec1873.101880.002000.0020770.002050.002000.001863.701880.002000.002021.802027.102016.202009.20169.20169.20161.30161.503.3813.318393 Platinum (NYM) 50 troy oz \$ per troy oz MayJuly807.60823.10807.60877.00805.10822.70864.70869.3052.205220842,602 Silver (CMX) - 5,000 troy oz,; \$ per troy oz MayJuly17.22017.22517.58517.98517.22017.12517.46417.4680.4180.398353111,605 Crude Oil, Light Sweet (NYM) - 1,000 bbl; \$ per bbl JuneJulyAugSeptDecDec2129.5329.8130.3030.9232.2535.5533.3233.1033.5233.9034.7737.8129.5329.5530.1530.6932.1335.5531.8231.6532.2732.8734.0737.302.392.132.152.182.061.7654.931308.1312.48.058304.304339.481129.484 NY Harbor ULSD (NYM) 42,000 gal; \$ per gal July.95851.0586.95561.0379.083170,002 Gasoline-NY RBOB (NYM) 42,000 gal; \$ per gal JuneJuly.9700.98821.05881.0699.9682.98301.02581.0426.0556.058845.07292,197 Natural Gas (NYM) - 10,000 MMBtu; \$ per MMBtu Soybean Meal (CBT) - 100 tons; \$ per ton \begin{tabular}{llll|lllll} July & 287.80 & 288.00 & & 284.50 & 285.10 & 2.40 & 174.198 \\ Dec & 293.50 & 293.80 & & 291.80 & 292.30 & .70 & 74.397 \end{tabular} Soybean Oil (CBT) -60,000 lb; cents per lb JulyDeeRoughRice(CBT)2,000cwt$$percwt26.6127.4327.4028.17 JulyMay16.0611.9116.3811.9515.9911.8616.0711.95.05.046.8774.385 Wheat (CBT) 5,000 bu; cents per bu JulySept501.50504.50502.75505.25493.75497.00497.00500.003.253.00198,56476.746 Wheat (KC)5,000 bu; cents per bu Cattle-Feeder (CMIE) 50,000 lb; cents per lh \begin{tabular}{llll|lll} May & 126.175 & 127.000 & 125.500 & 126.600 & 1.875 & 2,013 \\ Nug & 132.100 & 133.700 & 131.575 & 132.550 & 1.475 & 15.413 \end{tabular} Cattle-Live (CMIE) 40,000 tb; cents per lb Hogs-Lean (CME) 40,000lb; cents per lb JuneJuly58.50058.37558.80058.45057.10057.05057.65057.650.225.10032,85258,077 Lumber (CME) 110.000 bd ft,$ per 1,000 bd ft \begin{tabular}{lrr|llll} July & 349.80 & 351.00 & 343.30 & 346.20 & 1.20 & 1.579 \\ Sept & 351.10 & 352.90 & 346.70 & 349.40 & 2.50 & 715 \end{tabular} Milk (CME) 200,000 lb; cents per lb \begin{tabular}{lll|l|lll} May & 12.25 & 12.29 & 12.20 & 12.24 & & 4.600 \\ June & 16.75 & 16.90 & 16.32 & 16.66 & .19 & 4.992 \end{tabular} Cocoa (ICE-US) - 10 metric tons; \$ per ton \begin{tabular}{lll|llll} July & 2,393 & 2,416 & 2,376 & 2,404 & 5 & 73,008 \\ Sept & 2,367 & 2,390 & 2,354 & 2,379 & 4 & 57,839 \end{tabular} Coffee (ICE-US) - 37,500 lb; cents per lb MayJuly105.70106.75105.70108.10105.70105.00105.70107.75.90.90980.326 Sugar-World (ICE-US) - 112,000 lb; cents per lb JulyOct10.5210.6310.8310.9310.4710.5910.8010.9042140334.001239.325 Sugar-Domestic (ICE-US) -112,000 lb; cents per lb Cotton (ICE-US) - 50,000 lb; cents per lb JulyDee58.4057.9858.9658.7857.4057.3557.8057.9345.2486.78160,174 Orange Juice (ICE-US) - 15.000 lb; cents per lb Interest Rate Futures Ultra Treasury Bonds (CBT) $100,000; pts 32 ands of 100% June224000224020217300218030518,01,040,215 Treasury Bonds (CBT) $100,000; pts 32nds of 100% June181010181040178020178050225.01,004,681 Treasury Notes (CBT) $100,000 : pts 32 nds of 100% \begin{tabular}{l|l|l|llll} Sept & 139035 & 139050 & 125062 & 125067 & 12,0 & 160,418 \end{tabular} 5 Yr. Treasury Notes (CBT) $100,000; pts 32 nds of 100% \begin{tabular}{l|l|l|l|lll} Sept & 125200 & 125207 & 125062 & 125067 & 12.0 & 357,677 \end{tabular} 2 Yr. Treasury Notes (CBT) $200,000; pts 32 nds of 100% \begin{tabular}{ll|l|lllll} June & 110094 & 110099 & 110066 & 110068 & 2,1 & 2,306,556 \end{tabular} \begin{tabular}{l|l|lllll} Sept & 110141 & 110144 & 110109 & 110110 & 2.5 & 131,607 \end{tabular} 30 Day Federal Funds (CBT) $5,000,000;100 daily avg \begin{tabular}{lllllll|} May & 99.9475 & 99.9500 & 99.9450 & 99.9475 & .0025 & 228,664 \\ July & 99.9450 & 99.9500 & 99.9350 & 99.9350 & .0150 & 215.465 \end{tabular} 10Yr. Del. Int. Rate Swaps (CBT) $100,000; pts 32nds of 100% June105315106080105060105070101.073,230 Eurodollar (CME) $1,000,000; pts of 100% Canadian Dollar (CME) - CAD 100.000 : \$ per CAD \begin{tabular}{l|r|r|r|r|rr} May & .7134 & .7173 & .7088 & .7162 & .0073 & 820 \\ June & .7087 & .7175 & .7086 & .7162 & .0073 & 118,950 \end{tabular} British Pound (CME) E62.500; \$ per MayJuneSwissFrane(CME)MarchJune1.22361.2085CHF125,000:$perCHF1.03021.03281.22081.22291.03421.03701.20801.20791.02531.02841.21811.21931.02871.0316.0064.0075.0008.00081.718173.09942.543135 Australian Dollar (CME) -AUD 100,000; \$ per AUD MayJune.6459.6414.6504.6528.6415.6413.6483.6515.0065.0096329131,261 Mexican Peso (CME)-MXN 500,000; \$ per MXN MayJune.04199.04145.04258.04245.04166.04139.04235.04196.00071.000481,00298,421 Euro (CME) - C125,000; \$ per C Mini S\&P Mideap 400 (CME) $100 index JuneJune1573.001628.001680.901672.501571.501573.001672.601668.4096.4094.007.7594 Mini Nasdaq 100 (CME) $20 index JuneSept9135.009097.009361.509344.009110.259097.009325.509310.50229.00229.50197.7012.118 Mini Russell 2000 (ICE-US) $100 index JuneSept1254.101269.701338.201334.701247.501246.601333.201330.8086.8086.60547.5834.901 Source: The Wall Street Journal, May 19, 2020