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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:

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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: 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 45 (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. I like the basis? Now Later Question 46 (2.5 points) The com basis is above the breakeven basis line, and you think 2020 com production is smaller than the USDA November projection. I like the futures? Now Later Question 47 (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. For this situation I would chose the following pricing alternatives from above: OA, G, F, L OC,I,E,K ODJE, K OD,J,F,K Question 48 (2.5 points) The soybean basis is very weak now, and you expect the soybean crop in Brazil to be larger than currently estimated. Which quadrant are you in, in the Pricing Decision Chart? Quadrant Quadrant 11 Quadrant

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