1. Explain the difference between going short and going long in futures markets. (4 marks)
2. Explain the difference between the functional and analytical approaches to agricultural marketing (4marks)
3. Suppose the price of corn in Chatham on January 26, 2019 was C$4.74/bushel. On the same day, the unadjusted basis for the Chicago March 2019 corn futures contract price was $0.91/bushel.
4. a. What was the price of the Chicago March 2018 futures contract on January 26 2019? (4 marks)
5. b. If the adjusted basis was $0.057/bushel on January 26 2019, and given your answer in part a, what was the exchange rate on January 26 2019?