In December, what price per bushel does the feedlot expect to pay in cash market intrest?

Crop Insurance Calculation Problems Use the information given here to answer questions 11-15. A soybean farmer can choose between two crop insurance policies to protect against losses. One policy will protect against yield losses based on the farmer's APH yield, and the other policy will protect against revenue losses based on the APH yield and the price quoted in a November soybeans futures contract when the policy is purchased (sometime in February). The information necessary to evaluate the effectiveness of these policies is given here: At harvest, the soybean farmer's actual yield is 35 bushels per acre and the soybean price at harvest is $11.50 per bushel. Hedging Strategies Problems Use the information given here to answer questions 16-20. In December, the manager of a feedlot plans to purchase 50,000 bushels of corn on June 15 of the following year. At this time, the July futures price for corn is $6.60 per bushel and the mid-lune basis in the local cash market is usually 5 cents under. Also in December, at-the-money call option on July corn futures contracts with a strike price of $6.60 per bushel are selling at a premium of $0.35 per bushel. On June 15 , July corn futures are trading at a price of $6.50 per bushel and the basis is now 10 cents under