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Late in May ( prior to harvest ) you make a sale of 1 0 0 , 0 0 0 bushels of wheat on a
Late in May prior to harvest you make a sale of bushels of wheat on a forward contract with a buyer at
DEC for October delivery.
The sale is priced with the buyer and you purchase DEC futures.
In June harvest you purchase bushels of wheat at a basis of JUL which you will later deliver to the buyer.
As you purchase wheat from the farmers you sell JUL futures.
What must you do to complete this transaction?
Buy JUL futures.
Buy JUL futures Sell DEC futures.
Buy DEC futures Sell JUL futures.
Buy DEC futures.
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