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28-05-2023
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Suppose that Mr Memela, a wheat farmer, is expecting to harvest 6500 bushels of wheat in 4 months. Concerned with future price fluctuations of wheat, he entered into 65 futures contracts with each contract covering 100 bushels of wheat at a futures price of R82.39 per bushel. If each bushel of wheat currently trades for R82.62 at the market and R92.8 at maturity, determine Mr Memela's effective selling price per bushel if he ends up harvesting 1698 bushels of wheat at maturity. ROUND OFF YOUR ANSWER TO TWO DECIMAL PLACES AND INSERT ONLY THE NUMERICAL VALUE.

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