The Economic Function of Futures Markets (Continued) A distributor,j,may hedge by selling the commodity on the spot market now at a price s selling short a futures contract at a price F and deliver the commodity at a specified time in the future there will be a carrying cost cj for distributor j,and she will store only if Cj<F-S .THE COURSE OF FINANCE 2017 SPRING SJTU ●8The Economic Function of Futures Markets (Continued)  A distributor, j, may hedge by  selling the commodity on the spot market now at a price S  selling short a futures contract at a price F and deliver the commodity at a specified time in the future  there will be a carrying cost Cj for distributor j, and she will store only if Cj < F - S