Effectively be locking in based on the closing price of day

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Reference no: EM131602235

Suppose today is May 1, 2014, and your firm produces dinner meals and needs 85,000 bushels of corn in July 2014 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might rise between now and July. Each contract is for 5,000 bushels; the settle price for July 2014 is $5.19 per bushel. What total cost would you effectively be locking in based on the closing price of the day? (Round your answer to the nearest whole number, e.g., 32.)

Total Cost = $_______

Reference no: EM131602235

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