You are the new Chief Financial Officer $($CFO$)$ of a large company that owns coffee shops around the country. The Company$$s Chief Executive Officer $($CEO$)$ has asked you to prepare a report for Tuesday$$s late afternoon meeting of the Executive Board $($henceforth$,$ the $$Board$).$ She wants you to explain to the Board whether the company should hedge the risk from buying $50$ tonnes of Arabica coffee from one of its suppliers at the spot market price in November $2022$ ahead of the busy Christmas period. In

the past, whenever the Company has hedged using futures it has used ICE$$s Coffee $$C$$ contract; if the Board decides to hedge the November $2022$ order, it will use that contract again.