2. Gracies Grains has distributed a genetically modified grain that has been widely used by NSW wheat farmers. Gracie decides that before this evenings Four Corners expos goes to air detailing the link with Deranged Baker Disorder, she should take up a position to profit from the imminent detrimental impact the news will have on NSW wheat prices. If she is prepared to trade in 50 close-dated Eastern Australian Wheat futures contracts (of 20 metric tonnes / contract);

1. outline a possible strategy.
2. Calculate her profit or loss if all futures contract decrease in value by 60%.

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