Steven needs to sell 6,000 kg of fine wool in November 2020. He believes that todays 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 Date Settlement Price

June 2020 $13.75 / kg

September 2020 $14.15 / kg

December 2020 $14.55 / kg

Today is June 5^th, and Steven 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.

[Fine wool contract size is 2500 kg.]