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Kamela s Korn buys corn and converts the corn into corn oil and corn meal. Each bu of corn generates 1 5 lbs of corn

Kamela

s Korn buys corn and converts the corn into corn oil and corn meal. Each bu of corn generates

15

lbs of corn oil and

5

lbs of corn meal.

If Kamela could lock in the appropriate spread using futures contracts what initial positions would she take in the respective futures markets?

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