The Farmer and the Baker Jamela sells forward 200,000b for 1-month delivery 2.00 bushel .This short has no monetary value at this time A month later,the spot price of deliverable wheat is $2.20 b,and the forward is about to expire,and so is also trading at $2.20 b The contract now has a monetary value.The long position is worth S(2.20-2.00)/bushel .Jamela settles her position by paying $20,000 THE COURSE OF FINANCE 2017SPRING SJTU 12The Farmer and the Baker ³Jamela sells forward 200,000b for 1-month delivery @ 2.00 / bushel ®This short has no monetary value at this time ³A month later, the spot price of deliverable wheat is $2.20 / b, and the forward is about to expire, and so is also trading at $2.20 / b ³The contract now has a monetary value. The long position is worth $(2.20 - 2.00) / bushel ®Jamela settles her position by paying $20,000 THE COURSE OF FINANCE 2017 SPRING SJTU 12