Question 11 4 points Save Answer It is March 1 and a corporate treasurer learns that he will receive $2 million on May 1 that will be needed for a major capital investment. He plans to issue 6-month maturity commercial paper when he receives that money. Concerned about the prospect of rising interest rates he decides to hedge using a June T-Bill futures contract whose IMM futures price is 90.89 (i.e. FIMM = 90.89). What is the cash invoice price, (FC), of this T-Bill futures contract? $97,775 $90,890 $977,225 $908,900 none of these other answers are correct An elevator operator typically purchases huge amounts of grain from farmers. Assume the following prices. Date Spot Price /Bu March Futures Price September 1 $2.10 $2.34 ET October 1 $2.05 $2.20 November 1 $2.20 $2.38 It costs the elevator $0.05/Bu/month to store the grain. An elevator purchases grain from a farmer on September 1 at 3 cents under the spot and immediately sells it for 1 cent over the spot price. What is the elevator's hedging position? What is the elevator's hedging position? the elevator has no need to hedge long hedges from 9/1 to 10/1 short hedges from 9/1 to 10/1 short hedges from 9/1 to 11/1 long hedges from 9/1 to 11/1