Suppose a farmer anticipates to harvest 500,000 bushels of soybeans. Contract size is 5,000 bushels. The initial margin and maintenance margin for soybean futures are $1,980 and $1,800 per contract, respectively. Currently, the farmer has $200,000 cash in his brokerage account, and the price of March 2021 soybeans futures contract is $10.00/bushel.

A.) describe how the farmer would hedge his harvest. Clearly state the number of soybeans futures contracts the farmer should buy OR sell.

b.) how much money would the farmer recieve (if any) and what is his account balance immediately after the farmer establishes his futures position?