Refer to Figure $24\mathrm{.}6$ to answer this question. Suppose today is January $13,2021,$ and your firm is a jewellery manufacturer that

needs $2,500$ ounces of gold in August for the fall production run. You would like to lock in your costs today, because you're

concerned that gold prices might go up between now and August. Assume that the hedge is market to market.

a$.$ How could you use gold futures contracts to hedge your risk exposure? What price would you be effectively locking in$?($Omit

$"$$$"$ sign in your response.$)$

Total cost $,$$

b$.$ Suppose gold prices are $$1,820$ per ounce in August. What is the profit or loss on your futures position? $($Input the amount as

positive value. Omit $"$$$"$ sign in your response.$)$