John Brown, a wheat farmer, has asked you to advise him on how he can protect himself against an adverse price movement regarding the sale of his wheat using futures contract. He expects to have 1,000 tonnes of wheat for sale in the fall. It is now early March and the cash price for wheat is $590 per tonne. The settle price on a futures contract to sell wheat in September is $576 per tonne. Required: Advise John Brown on how he can hedge his risk of fluctuations using the futures market and demonstrate the calculation of John's resulting gain or loss if the cash price of wheat is a) $540 per tonne in September (4 marks) b) $615 per tonne in September (4 marks) Short Answer Toolbar navigation BI S 33 = ka Til V