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Business, 01.03.2021 22:10 NoodlesYT

It is March 1 today. A firm is planning on selling a commodity 8 months from now on November 1. The firm enters into a December futures contract on March 1 to hedge the sale of the commodity on November 1. It closed out its position on November 1. On March 1 the price of the commodity is $1,001 and the December futures price is $1,013. On November 1 the price is $979 and the December futures price is $983. What is the effective price (after taking account of the hedge) received by the company for the commodity

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