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G. It is time to rework the original production hedge and see what might go wrong. Assume you hedged all of your anticipated production on

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G. It is time to rework the original production hedge and see what might go wrong. Assume you hedged all of your anticipated production on December 1, 2018. Bad news, the spring rains were not adequate so your actual production is 70% of expected. The futures prices on July 1, 2019 are instead 7/1 JUL $6.85/bu. SEP $6.84/bu. DEC $6.77/bu. MAR20 $6.73/bu. MAY $6.64/bu. JUL $6.55/bu. Complete the following T-account. Assume you hedged all your expected production in December. Assume the actual basis equaled the expected level

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