1. On 15 November 2019, a wheat farmer became concerned that by the time her 200 metric tonne crop was ready for delivery in April 2020 that the price would fall below $335 per tonne - her break-even price. Given that one wheat contract is for 20 metric tonne, show how the farmer can lock in a profit for her business by entering and subsequently reversing a futures market position, if by April the spot price fell to $230 per tonne while May futures price fell to $332 per tonne.

Use the settlement price quotations in the following extract from the ASX website on 15 November 2019 to answer questions 1 to 3. Last baded: Fri 15 Nov 2019 17:44 Security Month Category Commodity Markets Type Futures Eastern Australian Wheat (WM) Eastern Australian Wheat (WM) Futures Prices are DELAYED by a minimum of 20 minutes. Trade Previous Seffement Jan 20 334.50 363.00 Mar 20 331.50 360.00 May 20 371.00 Jul 20 340 00 Sep 20 Jan 21 342.00 Jan 22 343.00 Category Commodity Markets Eastern Australia Feed Barley (UB) Futures Prices are DELAYED by a minimum of 20 minutes. Expiry High Low Nov 19 Jan 20 295.00 Mar 20 May 20 309.00 Jul 20 316.00 Sep 20 Jan 21 Jan 22 Last ad Security Eastern Australa Feed Barley (UB) 342.00 343.00 335.00 Type Futures Last Trade 273.00 278.00 Last Trade Time 15/11/19 13:45 15/11/19 13:41 12/11/19 17:36 Month Last Trade Time 14/11/19 16:50 15/11/19 13:41 Change Traded Volume 341.00 343.00 346.00 348.50 345.50 333.50 328.50 Last Fri 15 Nov 2017 Press Settlement 330.00 270.00 278.00 277.00 281.00 251.00 279.00 279.00 Refresh Use the settlement price quotations in the following extract from the ASX website on 15 November 2019 to answer questions 1 to 3. Last baded: Fri 15 Nov 2019 17:44 Security Month Category Commodity Markets Type Futures Eastern Australian Wheat (WM) Eastern Australian Wheat (WM) Futures Prices are DELAYED by a minimum of 20 minutes. Trade Previous Seffement Jan 20 334.50 363.00 Mar 20 331.50 360.00 May 20 371.00 Jul 20 340 00 Sep 20 Jan 21 342.00 Jan 22 343.00 Category Commodity Markets Eastern Australia Feed Barley (UB) Futures Prices are DELAYED by a minimum of 20 minutes. Expiry High Low Nov 19 Jan 20 295.00 Mar 20 May 20 309.00 Jul 20 316.00 Sep 20 Jan 21 Jan 22 Last ad Security Eastern Australa Feed Barley (UB) 342.00 343.00 335.00 Type Futures Last Trade 273.00 278.00 Last Trade Time 15/11/19 13:45 15/11/19 13:41 12/11/19 17:36 Month Last Trade Time 14/11/19 16:50 15/11/19 13:41 Change Traded Volume 341.00 343.00 346.00 348.50 345.50 333.50 328.50 Last Fri 15 Nov 2017 Press Settlement 330.00 270.00 278.00 277.00 281.00 251.00 279.00 279.00 Refresh