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Homework 3 . 2 ( Chapter 3 ) Name: ID: Please SHOW YOUR WORK 3 . Basis risk: A short hedge for a corn grower.

Homework 3.2(Chapter 3)
Name:
ID:
Please SHOW YOUR WORK
3. Basis risk: A short hedge for a corn grower. The expected basis is $-0.30. And the actual basis is $-0.40.
\table[[Date,Cash,,Futures,],[1-Oct,Cost of Production,$6.00,May Futures,$6.40
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