Suppose Susan will have to sell 5,000 bushels wheat from the spot market on December 1. The December futures is quoted at $3.25 per bushel. To completely hedge the risk, Susan should____1 Dec. futures contract (the size of wheat futures contract is 5,000 bushel). If the Dec. 1 spot price is $3.50 per bushel, Susan will___per bushel from the futures contract. The net cost is_____per bushel.
A. buy, gain $0.25, $3.50
B. sell, lose $0.25, $3.50
C. buy, gain $0.25, $3.25
D. sell, lose $0.25, $3.25
