b$)$ A sunflower farmer estimates, during March $2023,$ that he will harvest $60,000$kgs of sunflower by

December $2023.$ The price on futures contract for December $2023$ Sunflower is P$6\mathrm{.}00$ per kg$.$ Sunflower futures

contracts are traded in $5000$ kg units

$($i$)$ Explain the risk that the farmer is exposed to$.(5$ marks$)$

$($ii$)$ Determine the number of contracts that the farmer can hedge the risk he is exposed to at the

time of harvest in time considering that the price of Sunflower can rise to P$6\mathrm{.}00$ per kg and determine

the total revenue after hedging has been done,