The "Jones Company" is a South African company that imports soy beans from Zaire. South Africa will lower interest rates next month. Based on what we learned in class, what should the Jones Company do$?$

A$.$

The Jones company should wait until next month to import soy beans from Zaire.

B$.$

Next month, we can expect Zaire's currency to appreciate in value. The Jones Company should import as many soy beans now, before this interest rate change goes into effect.

C$.$

Next month, we can expect South Africa's balance of trade position to shift to more of a deficit position.

D$.$

We don't have enough information to answer this question.

Joe is convinced the market price of coffee will decline between now and December $2024.$ He decides not to hedge his position through the coffee futures exchange $($based on the hedging process that we learned about in class$).$ Joe is hoping he can wait for the market price to drop, and then buy the coffee based on a lower market price once December $2024$ rolls around.

For purposes of this exam question, let's assume that we fast forward in time to December $2024$ where the new price of the December $2024$ futures contract is now $252.$ Because the December $2024$ futures contract will expire soon, Joe and the exporter agree to settle their price based on the new contract value of $252,$ plus or minus the premium or discount they agreed to$.$

How much money could Joe have saved had he followed the simple hedging practices based on what we learned in class?