(Solution) - Suppose that in the 5 days following a farmer s sale -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Suppose that in the 5 days following a farmer's sale of September wheat futures at a futures prices
of $9.83 the futures price is:

At the end of day 5 the farmer decides to quit wheat farming and buys back his futures contract.
What payments are made between the farmer and the exchange on each day? What is the total
payment over the 5 days? Would the total payment be any different if the contract was not
marked to market?
Contruct size ......................5000.00