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Earlier this year a grain producer sold soybeans using futures contracts at $ 1 3 . 3 0 / bu for November 2 0 2
Earlier this year a grain producer sold soybeans using futures contracts at $bu for November delivery. Her expected basis for November is $bu
Now let us fastforward to October. Assume that on October the futures market is trading at $bu for November delivery and $bu for January delivery. Assuming his expected basis for January is $bu her cost of carry is $bumonth and transaction cost to trade futures contract is $bu check below all statements that are true.
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