Example • A farmer sells two soybean futures contracts at a price of $8.91 per bushel. The spot price of soybean is $9.05 per bushel at contract expiration. The farmer harvested 14,000 bushels. •...

Extracted text: Example • A farmer sells two soybean futures contracts at a price of $8.91 per bushel. The spot price of soybean is $9.05 per bushel at contract expiration. The farmer harvested 14,000 bushels. • (1)What are the farmer's proceeds from the sale of oats if the farmer sell 10,000 bushels with the futures contracts and sell the rest in the spot market? • (2)What are the farmer's proceeds if the farmer sells all the 14,000 bushels of oats in the spot market?