Suppose your grandparents are soybean producers. They expect to grow 75,000 bushels and need to sell in a month. However, they are unsure about the price fluctuations due to weather and trade concerns between the US and China. Current soy price, spot price, is $9.32 per bushel. Each futures contract is 5,000 bushels. 1-month futures price for soy is $9.45 per bushel. Your grandparents do not want to take the price risk. Help them! What position should they take in the futures market, short or long, and WHY? ii. How many futures contracts should your grandparents sign? Suppose the spot soybean price in one- month is going to be either 59.58 or $9.23. What is your grandparents' Cash Flow if they didn't hedge their position in each likely price in 1-month? If $9.58, then: If $9.23, then: iv. What is the P/L of your grandparents' futures contract they took in () in each likely price in 1-month? If $9.58, then: If $9.23, then V Graph your grandparents' unbedged and hedged Cash Flow position and put the answers in iii and iv on the graph at maturity (Must label all the information!)