On 15 November 2019, a wheat farmer became concerned that by the time her 200 metric tonne crop was ready for delivery in April 2020 that the price would fall below $335 per tonne - her break-even price.Given that one wheat contract is for 20 metric tonne, show how the farmer can 'lock in' a profit for her business by entering and subsequently reversing a futures market position, if by April the spot price fell to $230 per tonne while May futures price fell to $332 per tonne.

2.Gracie's Grains has distributed a genetically modified grain that has been widely used by NSW wheat farmers.Gracie decides that before this evening's '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);

i)outline a possible strategy.

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