David is the chief executive officer of grand rocks mining company. he has convinced the company's board of directors to implement a change in the mining procedure. according to the new procedure suggested by david, less resources will be exhausted. this will ensure that the ability of future generations to meet their needs is not harmed because of shortage of natural resources. by agreeing to david's suggestion, grand rocks has embraced the idea of

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out