1) A cereal farmer has a stock of wheat of 50 tonnes, and plans to sell them in a year. The spot price is  100 / t, the 1-year interest rate is 1%, the cost of storing wheat is 0.5% of the value of the inventory, payable at maturity. What do you advise him to do if he wants to hedge against fluctuations in the price of wheat, and the one-year wheat price is  100.5 / t? What is the fair price of wheat at one year? 2)A miller plans to buy 100 tonnes of wheat in a year. The spot price is  100 / t, the 1-year interest rate is 1%, the cost of storing wheat is 0.5% of the value of the inventory, payable at maturity. What do you advise him to do if he wants to hedge against fluctuations in the price of wheat, and the one-year wheat price is  102.5 / t? What is the fair price of wheat at one year?