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Potential Marketing Actions A: Store cash, B: Sell Cash. C: Hedge (store cash, sell futures), D: Sell cash, buy futures, E: Minimum price contract, F:
Potential Marketing Actions A: Store cash, B: Sell Cash. C: Hedge (store cash, sell futures), D: Sell cash, buy futures, E: Minimum price contract, F: Store cash, buy put option. G: Delayed pricing, H: Forward contract, I: Hedge-to-arrive, J: Basis contract, K: Sell cash or forward contract, buy call. L: Minimum price hedge-to-arrive Question 42 (2.5 points) The wheat basis is very strong now and you expect India wheat import: from the U.S. to drop substantially as they plant more wheat. I like the Futures? Now Later Question 43 (2.5 points) The wheat basis is very strong now and you expect India wheat imports from the U.S. to drop substantially as they plant more wheat. For this situation I would chose the following pricing alternatives from above: B, H, F, L OC, I, F, L OCIE, K B, H, E, K Question 44 (2.5 points) The corn basis is above the breakeven basis line, and you think 2020 com production is smaller than the USDA November projection. Which quadrant are you in, in the Pricing Decision Chart? Quadrant Quadrant 11 Quadrant III Quadrant IV
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