A) buy corn and soybean futures and sell milk futures B) buy corn futures and sell soymeal and milk futures C) buy soymeal futures and sell corn and milk futures

To answer questions 5 through 15, please refer to the following scenario: Lauren is a dairy farmer in the Central Valley. She has a 3000 cow dairy with average annual production of 25,000 pounds per cow. It is November 1 and times are tough but she sees an opportunity to possibly lock in some profit using class III milk futures for 3 months worth of production through January of next year. She calculates that her local milk basis is +2.00. December futures are trading at $20.50 per hundredweight, with January at $21.00. She has locked in some of her feed with forward contracts, but still is open for her corn and soy meal. December corn futures are trading at $3.80 and March at $3.92. The corn basis is +$1.25, and the soymeal basis is + $55. December soymeal futures are $370 and March is $385. She is feeding 16 lbs. per day of rolled corn and 4 1bs. per day of soy meal per cow. Question 5 0 / 1 pts 5. What action should Lauren take in the futures market to lock in her profit