Use the settlement price quotations in the following extract from the ASX website on 15 November 2019 to answer questions 1 and 2. Category Security Type Month Commodity Markets Eastern Australian Wheat (WM) Futures Eastern Australian Wheat (WM) Futures Prices are DELAYED by a minimum of 20 minutes. Last loaded: Fri 15 Nov 2019 17:44 Refresh Expiry Bid Ask Open High Low Last Trade Last Trade Time Change Traded Volume Previous Settlement Jan 20 334.50 363.00 342.00 15/11/19 13:45 341.00 Mar 20 331.50 360.00 343.00 15/11/19 13:41 343.00 May 20 371.00 346.00 348.50 Jul 20 340.00 Sep 20 348.50 Jan 21 Jan 22 Category Commodity Markets 342.00 343.00 Security Type Month Eastern Australia Feed Barley (UB) Futures 335.00 12/11/19 17:36 333.50 328.50 Last loaded: Fri 15 Nov 2019 17:46 Refresh Eastern Australia Feed Barley (UB) Futures Prices are DELAYED by a minimum of 20 minutes. Expiry Bid Ask Nov 19 Jan 20 295.00 Mar 20 May 20 309.00 Jul 20 316.00 Sep 20 Jan 21 Jan 22 Open High Low Last Trade Last Trade Time 273.00 14/11/19 18:50 278.00 15/11/19 13:41 Change Traded Volume Previous Settlement 330.00 270.00 278.00 277.00 281.00 281.00 279.00 279.00 1. On 15 November 2019, a wheat farmer became concerned that by the time her 200 metric tonne crop was ready for delivery in April 2020 that the price would fall below $335 per tonne - her break-even price. Given that one wheat contract is for 20 metric tonne, show how the farmer can lock in' a profit for her business by entering and subsequently reversing a futures market position, if by April the spot price fell to $230 per tonne while May futures price fell to $332 per tonne. 2. Gracie's Grains has distributed a genetically modified grain that has been widely used by NSW wheat farmers. Gracie decides that before this evening's 'Four Corners' expos goes to air detailing the link with Deranged Baker Disorder, she should take up a position to profit from the imminent detrimental impact the news will have on NSW wheat prices. If she is prepared to trade in 50 close-dated Eastern Australian Wheat futures contracts (of 20 metric tonnes / contract); i) outline a possible strategy. ii) Calculate her profit or loss if all futures contract decreased in value by 60%.