EASTERN AUSTRALIAN WHEAT (WM) FUTURES

Expiry Bid Ask Last Trade Last trade Time Previous Settlement

Expiry	Bid	Ask	Last Trade	Last trade time	Previous statement
Jan 20	334.5	363.00	342.00	15/11/19 13:45	341.00
Mar 20	331.5	360.00	343.00	15/11/19 13:41	343.00
May 20		371.11			346.00
Jul 20	340.00				348.50
Sep 20					348.50
Jan 21		342.00	335.00	12/11/19 17:36	333.50
Jan 22		342.00			328.50

Question 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);Question

i) outline a possible strategy.

ii) Calculate her profit or loss if all futures contract decreased in value by 60%.