Question: A farmer who has a forward contract for 5 , 0 0 0 bushels at $ 6 . 5 0 is unable to deliver any

A farmer who has a forward contract for 5,000 bushels at $6.50 is unable to
deliver any of the bushels at harvest and wants to cancel the contract. The
elevator is curently paying $6.20, and charges a cancellation fee of 10 cents.
What is the outcome of the cancellation?
The elevator pays the farmer 20 cents
The elevator pays the farmer 30 cents
The farmer pays the elevator 30 cents
A farmer who has a forward contract for 5,000 bushels at

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