1. What price would a feedlot operator located near Ogden, Utah plan to spend on corn he will be buying in the local cash market on March 1, 2023 if he hedges the corn on December 1, 2022 and the expected basis for March 1 is $0.12 over per bushel? 2. Assume the same buyer as in question 1 and that storage cost for corn between December 1, 2022 and March 1, 2023 is $0.15/bu. What would his net purchase price (cost) for the corn be if: a. He bought the physical corn on 12/1/22 in the cash market when the local cash price was $6.75/bu.? b. He hedged (long position) the corn on 12/1/22 and then offsets the contract on 03/01/23 when local cash price is $6.90/bu, and the March Corn futures price is $6.80/bu.? c. He waited to purchase the corn on 03/01/22 when the basis was $0.10 over per bushel and the futures price was $6.75/bu.? P . 4 MONTH DEC 2022 2232 MAR 2023 ZCHO MAY 2023 ZCK3 JUL 2023 20N3 SEP 2023 ZCUB DEC 2023 OPTIONS OFT 9 5 9 CHART F 119. all aff A a F all 7.999 7.299 657 0 6166 604'4 CHANGE -3'0 (-0.45%) -24 (-0.37%) -216 (-0.41%) -276 (-0,42%) -1'4 (-0.20%) -20 (-0.33%) PRIOR SETTLE 662'0 6670 665 2 9.659 618 2 1.999 4 OPEN 9.199 666 6 664'6 2.659 617 4 6054 9.199 8.699 66770 661 2 620/0 6074 9.499 0.299 660 4 8.509 0.000 VOLUME 1,542 32,900 5,366 SCE'S 1,003 3,233 UPDATED 08:59:36 CT 01 Dec 2822 09:00:20 CT 81 Dec 2022 09:00:19 CT 01 Dec 2822 09:00:18 CT 01 Dec 2022 09:00:19 CT 81 Dec 2922 00:59:30 CT #1 Dec 2022