On March 1 the price of a commodity is $1,000 and the December futures price this commodity is $1,015. On November 1 the spot price of the commodity is $980 and the December futures price is $981. A producer of the commodity entered a December futures contracts on March 1 to hedge the sale of the commodity on November 1. The producer closed out the position on November 1. What is the effective price (after taking account of hedging) received by the producer?

$1,014

Explanation:

Calculation to determine the effective price (after taking account of hedging) received by the producer

Using this formula

Effective price=Future price+(Spot price-Future price)

Let plug in the formula

Effective price=$1,015+($980+$981)

Effective price=$1,015+(-$1)

Effective price=$1,014

Therefore the effective price (after taking account of hedging) received by the producer is $1,014

As Elliot wants to open a checking account and is searching for best option at different bank which is near to his house. The possible benefits or fees that may differ among the checking accounts may include  

- A minimum amount of money to open an account.

- The cost/charges for a monthly statement.  

- Service charges for the local or international transaction.

- Monthly withdraw limitation, this may differ as per Elliot's age.

- An interest rate or overdraft fee charged from Elliot.

Once Elliot finds the best option he may open the checking account in the bank that suits him.