A barley farmer fearing of falling barley prices can use wheat futures to hedge. The two grains have a 0.8 correlation. Barley price changes have a standard deviation of 0.2 and wheat price changes have a standard deviation of 0.4.

Barely harvest is expected in October. The farmer should use the ______________ (March/June/September/December) wheat contract.

The sensitivity (beta) of barely price changes to wheat price movements is ______________ (round to two decimals).

Rounded to the nearest integer, the farmer will need to go____________ (<--write long or short) of number of _______________ wheat contracts if he is expecting his barley harvest to yield about $300,000 worth of grain and the value of one contract of wheat futures is currently 10,000.