Steve needs to sell 5,000 kg of fine wool in November 2020.He believes that today's spot price of $13.70 / kg is unusually low, and has incurred costs based on his assumption that the price will rise to $14.25 / kg by November.The following fine wool contracts are available on the futures market:

Delivery DateSettlement Price

June 2020$13.75 / kg

September 2020$14.15 / kg

December 2020$14.55 / kg

Today is June 5^th, and Steve decides to hedge his position using futures.Assume that he can enter futures contracts at the settlement price.Use the grid below to clearly specify:

i)the action he should take today,

ii)the action he should take in November if spot and December futures prices are $14.00 and $14.20 respectively,

iii)his effective (hedged) revenue per kilogram from selling fine wool in November.