On March 1 a commodity's spot price is $220 and its June futures price is $224. On May 1 the spot price is $200 and the June futures price is $208. A company entered into futures contracts on March 1 to hedge its sale of the commodity on May 1. Consider the following statements. 1. The basis on March 1 is $4.00. II. The basis on May 1 exceeds the basis on March 1 by $4.00. III. If the company did not hedge, the effective price that it would receive for the commodity is $200.00. 1. If the company did hedge, the effective price that it would receive for the commodity is $224.00. Which of the following is correct? Select one: a. Statements I and II are correct, Statements III and IV are incorrect. b. Statements II and Ill are correct, Statements I and IV are incorrect. c. Statements I and IV are correct, Statements II and Ill are incorrect. d. Statements I and III are correct, Statements II and IV are incorrect. e. Statements lll and I are correct, Statements I and II are incorrect. 1. Statements II and IV are correct, Statements I and III are incorrect. No sute On March 1 a commodity's spot price is $220 and its June futures price is $224. On May 1 the spot price is $200 and the June futures price is $208. A company entered into futures contracts on March 1 to hedge its sale of the commodity on May 1. Consider the following statements. 1. The basis on March 1 is $4.00. II. The basis on May 1 exceeds the basis on March 1 by $4.00. III. If the company did not hedge, the effective price that it would receive for the commodity is $200.00. 1. If the company did hedge, the effective price that it would receive for the commodity is $224.00. Which of the following is correct? Select one: a. Statements I and II are correct, Statements III and IV are incorrect. b. Statements II and Ill are correct, Statements I and IV are incorrect. c. Statements I and IV are correct, Statements II and Ill are incorrect. d. Statements I and III are correct, Statements II and IV are incorrect. e. Statements lll and I are correct, Statements I and II are incorrect. 1. Statements II and IV are correct, Statements I and III are incorrect. No sute