You are a speculator in corn futures, always purchasing 5 contracts when you transact. Using the current spot price for corn wherever appropriate, and researching the current margin requirement for corn futures, analyze scenarios 1,2 and 3 below:

(Be sure to show all calculations, with" checking calculations" after your mainanalysis to show that your calculations were basically correct).

1. You expect corn to rise to 399.86 by july of '17. What do you do to make a profit, assuming your extimate comes true?

2. What do you do if, relative to #1 above, and near the expiration data of your futures, you guessed wrong and corn futures are now quoted at 339.32?

3. Assyne instead of the situation #1 and 2 above, you think that corn prices will fall over the next few months to 339.32. What do you do make money as a speculator, and your estimate comes ture?