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On March 1, the price of a commodity is $102 and the December futures price...

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Finance

On March 1, the price of a commodity is $102 and the December futures price is $107.5. On November 1, the price of the commodity is $107 and the December futures price is $105. A buyer of the commodity entered into a December futures contracts on March 1 to hedge the purchase of the commodity on November 1 (The buyer bought futures contracts). She closed out her position on November 1. What is the effective price (after taking account of hedging) paid by the buyer for the commodity?

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