(Solved): 5 1 luations Roster Question 1 1 pts Consider a farmer who is expected to harvest 80 tonnes of whe ...

5 1 luations Roster Question 1 1 pts Consider a farmer who is expected to harvest 80 tonnes of wheat. The spot price of wheat at time t is equal to 10 per tonne. The farmer expects to harvest wheat on date t, which is to occur before date T when futures contracts are settled. Imagine that at time t a single futures contract with the date of settlement T that involves 1 tonne of wheat costs 12. What is the total payoff to the farmer if the farmer engages in a futures contract at time t and chooses to off-set her position at time to when the price of a single futures contract with the date of settlement T involving 1 tonne of wheat costs 15 and the spot price of wheat is equal to 12 per tonne? 720 -240 960 O None of the above Mort