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A corn farmer sells 10 futures contracts of 10000 bushels each at Rs.2.00 per bushel. The spot price is Rs.1.65 per bushel. At the time

A corn farmer sells 10 futures contracts of 10000 bushels each at Rs.2.00 per bushel. The spot price is Rs.1.65 per bushel. At the time of harvesting which is four months from now if the price per bushel reaches Rs.2.075 what is the basis at the time of expiration of the contract? Does the farmer gain or lose and by how much amount with respect to future price four months ago ?( 15 MARKS)

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