available for October delivery with a futures price of $$200$ per tonne. Options with strike price of $$200$ per tonne are also available; puts cost $$15$ and calls cost $$18.$

a$.$ Describe how Hans can fully hedge using futures contracts.

b$.$ Given the strategy in $($a$),$ what will be the total net amount received by Hans $($for all $3,000$ tonnes$)$ if the price of barley in October is as follows:

i$.$ $$150$ per tonne; ii$.$ $$200$ per tonne; iii. $$250$ per tonne

c$.$ Describe how Hans can fully hedge using options.

d$.$ Given the strategy in $($c$),$ what will be the total net amount received by Hans $($for all $3,000$ tonnes$)$ if the price of barley in October is as follows:

i$.$ $$150$ per tonne; ii$.$ $$200$ per tonne; iii. $$250$ per tonne

e$.$ Hans has asked for your advice regarding hedging. Discuss how the each of the following individually will influence your advice.

i$.$ Hans does not expect to have much cash available between May and September.

ii$.$ Hans thinks there is a $25\%$ chance his crop will be destroyed by hail before he has a chance to harvest it$.$

a$.$ Determine how Hans can fully hedge using futures contracts.

A$.$ Hans can take an intermediate position in futures on $3,000$ tonnes of barley for delivery in October.

B$.$ Hans can wait until prices rise in the future.

C$.$ Hans can take a long position in futures on $3,000$ tonnes of barley for delivery in October.

D$.$ Hans can take a short position in futures on $3,000$ tonnes of barley for delivery in October.

b$.$ Given the strategy in $($a$),$ what will be the total net amount received by Hans $($for all $3,000$ tonnes$)$ if the price of barley in October is as follows:

i$.$ $$150$ per tonne: the total net amount received by Hans is

ii$.$ $$200$ per tonne: the total net amount received by Hans is

iii. $$250$ per tonne: the total net amount received by Hans is $.$

$($Round your answers to the nearest dollar.$)$