Question #3: Hedging with Futures Contracts 120 Pointsl Farmer John is a wheat farmer who plans on selling his wheat in the future. Farmer John anticipates he will have 60,000 bushels of wheat to sell next September. However, he is concerned that the future market price of wheat will be low, which would result in low revenues from the sale of his wheat. The local farm bureau forecasts three possible prices for wheat next September: 325 cents, 335 cents or 345 cents. Suppose the futures price is 341 cents and that each futures contract is for 5,000 bushels of wheat. (a) If Farmer John wanted to guarantee himself a certain sales price should he take a long or short position in the future contract? [3 Points]