A potato farmer has asked you to advise him on how he can protect himself against an adverse price movement regarding the sale of his potatoes using futures contract. He expects to have 1,000 tonnes of potatoes for sale in the summer. It is now early January and the cash price for potatoes is $170 per tonne. The settle price on a futures contract to sell potatoes in June is $195 per tonne. Required: Advise the farmer on how he can hedge his risk of fluctuations using the futures market and demonstrate the calculation of the farmer's resulting total revenue if the cash price for potatoes is: a) $200 per tonne in June and the settle price on a futures contract to buy potatoes is $180 per tonne, (4 marks) b) $240 per tonne in June and the settle price on a futures contract to buy potatoes is $220 per tonne (4 marks)