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If you believe the futures price will increase and the basis will widen, the table recommends that you sell your commodity with one or more
If you believe the futures price will increase and the basis will widen, the table recommends that you sell your commodity with one or more of the following strategies.
Basis contract
Minimum price contract Selling in the cash market now and then buying calls
Explain, for each strategy above, why they would be recommended if the hedger believes the futures price will increase and the basis will widen. The questions below refer to the following table.
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