In July 2021, a sheep farmer became concerned that by the time she sells her crop of 21,000 kg of wool in November 2021 that the price would fall from its current $13.50 per kg to less than her $12.00 per kg break-even price. One wool contract is for 2,500 kg, and September and December wool futures prices are $12.90 and $12.70 respectively. i) Use the table below to show how

Specifically identify:

ii) Profit on futures: Overall (hedged) revenue from wool: iii) Effective (hedged) price per kilogram: