(A) Face value of the contract is the total value of Bushels price as per contract = 10,000 * $7 = $70,000
(B) On the delivery date either the contract can be settled on gross or net basis. In gross basis, the farmer will deliver the Bushels and collect the money. In net position, Farmer can settle the difference between the price of Bushel on the date of delivery with the forward rate. Example, if price on the date is $6, Farmer will receive net $1 from the Forward seller.
(C) Farmer will be selling the bushel, thus he has a short position. The other person buying the bushel would have a Long position.
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