You,a Farmer,anticipate Taking 80,000 Bushels of Soybeans to the Market

You,a farmer,anticipate taking 80,000 bushels of soybeans to the market in three months.The current cash price for soybeans is $5.85.The size of the futures contract is 5,000 bushels per contract and the current three-month futures price is $5.88.You decide to hedge one-half of your exposure to a drop in the value of soybeans.Assume that in three months,when you take the soybeans to market,you close out the futures contracts and the price has fallen to $5.80.How much did this hedge in the futures market generate in gains?

A) $2,400
B) $2,000
C) $6,400
D) $4,000
E) $3,200