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1.In November, a farmer in Illinois sells an AUG soybean futures contract for $10.5700 per bushel.In August when he sells his crop, he offsets his
1.In November, a farmer in Illinois sells an AUG soybean futures contract for $10.5700 per bushel.In August when he sells his crop, he offsets his futures hedge for $10.8025 per bushel.At the same time, he sells his soybean crop in the cash market for $10.8000 per bushel.Assuming no broker fees and accounting for profit/loss in the futures market, what is thenetprice per bushel he receives for his wheat?
a.$10.5675 per bushel.
b.$10.5700 per bushel.
c.$10.8000 per bushel.
d.$11.0325 per bushel.
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