You are a jewelry maker. In May of each year, you purchase 10,000 troy ounces of silver to restock your production inventory. Today, you hedged your position at what turned out to be the lowest price of the day. Assume the actual price per troy ounce of silver is 9.215 in May. How much did you gain or lose by hedging your position?

Silver - 5,000 troy oz.: U.S. dollars and cents per troy oz.

	Open	High	Low	Settle
Mar	10.190	10.250	9.600	10.244
May	9.655	9.740	9.550	9.700

loss $3,350

loss $2,200

gain $2,200

gain $3,350