In Mid-October you are buying 50,000 bushels of corn at 80 Dec basis. You could immediately sell it at a cash price of 400 cents per bushel. However, you plan to carry the corn from mid- October until mid-April. You base your cost-of-carry on an interest rate of 10%. At the end of November you are forced to set your Dec/May spread at a 5 cents inversion. By mid-April, your sell basis is at +30 May and you sell the corn. what is your Adjusted Buy Basis at the end of November after executing the spread ? +75 May +85 May -75 May -85 May

Future and options market.