Suppose that on October 10 you commit yourself to selling 10,000 ounces of silver on November 25. The spot price of the silver on October 10 is $11.5 per ounce. On the same date, you attempt to hedge the risk of a future decline in the price of silver by taking a short position in two December silver futures contracts. The futures price is $11 per ounce. Each futures contract is for the delivery of 5,000 ounces of silver. On November 25, you deliver the silver and close the futures position with an offsetting transaction in futures. On this date, the spot price of silver is $9.5 per ounce and the price of December silver futures is $8.5. What are the total proceeds from the sale of silver on November 25? Consider the gains or losses from the futures contracts when computing the total proceeds.

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