Question 3 (6.5 points): Hedge October 15th: A producer plans to sell wheat in early July, currently, July wheat futures are trading at 680'6. The expected basis is $0.60 under. Does the producer have a long or short cash position? Does the producer have a long or short futures position? To hedge: The producer will per bushel. What is the expected cash price? July 1st. (buy/sell) July wheat futures at 680'6 The producer must (buy/sell) wheat locally in the cash market at 562'2 per bushel. To offset their future position, they must 599'4 per bushel. What is the actual basis? (buy/sell) July futures at Was the basis stronger, weaker, or the same as expected? What is the realized price for the producer? o Method 1: O Method 2: The hedge resulted in a realized price of