Answer:
Total Gain= $2900
Step-by-step explanation:
There are two parts of trade- one in cash and one in future.
Cash trade:
Purchase of 10,000 bushes at $4.30
Total value = 10000*4.30 = 43,000
Storage cost is 1 cent per month and 10,000 bushes are sold after 3 months Hence ,
Total storage cost = 10,000 * 0.01 * 3 = $300
Selling price of the corn bushes = $6.15 per bushes
Total value = 10,000*6.15 = 61,500
Total profit in cash trade = 61,500 - 43,000 - $300 = $18,200
Future trade :
10,000 bushes ( 2 contract of 5000 quantity) is sold at $4.60
Total value = 10,000*4.6 = 46,000
After 3 months 10,000 bushes of future contact are purchased at $6.13
Total but value = 10000*6.13 = 61,300
Total loss in future trade = sell value - buy value
= $46,000 -$61,300 = -15,300
Total profit in trade = profit from cash + profit from future trade
= 18,200 - 15,300 = 2,900
Total gain = $2,900