Question: Futures contract specifications for live cattle are shown below. Use the table of futures market data dated December 4, 2019 to answer question 1 below.

Futures contract specifications for live cattle are shown below. Use the table of futures market data dated December 4, 2019 to answer question 1 below. OPEN HIGH LOW SETTLE Live cattle - 40,000 pounds; cents per pound Feb 2020 124.125 125.875 123.975 124.125 Apr 126.050 126.450 124.675 124.875 June 117.550 117.875 116.30 116.400 August 115.125 115.450 113.925 113.950 October 116.675 116.775 115.325 115.325 1. Suppose today is December 4, 2019 and a company that processes beef will take delivery of 200,000 pounds of cattle on August 1. The company would like to lock in its costs today. a) What contract month, position (long or short), and number of contracts should the company take? b) What price are they effectively locking in based on the SETTLE price of the day? c) Suppose cattle futures are trading at 130.850 cents on August 1. What is the profit or loss on the futures position? d) Suppose cattle futures are trading at 101.800 cents on August 1. What is the profit or loss on the futures position

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