Editing D E F G H > We own a food company, we know we will need 10 tons of sugar 6 months from now to meet production goals. A ton is 2000 lbs (pounds). There are 2 options for sugar: we can either buy the sugar at the going market price in 6 months (which could be higher or lower than today's price in B4, see row 9) or we can buy futures contracts that guarantees the sugar at today's price (see B4) for 5 or 10 tons, plus transaction costs. Our options are: i) purchase a futures contract for 10 tons of sugar now, ii) purchase a futures contract for 5 tons of sugar now and purchase 5 tons of sugar in 6 months at market price. iii) purchase all 10 tons of sugar in 6 months at the market price. a) Fill-in the cost table associated with each of the 3 decisions. b) Calculate the EMV for each of the 3 decisions. c) We want to minimize cost, what is the best decision based on EMV? Justify why. O BI E