Question 1 4 pts (1-5) Assume: On Apr 1st, a farmer expects to harvest 30, 000 bushels of wheat in Oct and sell it for $2.60/bu. Afraid of a subsequent decline in cash prices, the farmer hedges via futures contracts now trading at $2.90/bu. On Oct 1st, cash prices are at $2.75/bu., and his futures contract prices are at $2.95/bu. 1. On April 1st, what position should the farmer take in the futures market? Long with 5 Oct contracts O Long with 6 Nov contracts O Short with 10 Dec contracts Short with 6 Nov contracts 8. If prices rise and the Basis Strengthens, who is helped an how? Bull Speculator Bear Speculator O Grain Elevator in Cash Market Farmer in Futures Market Question 9 9. If prices rise and the Basis Strengthens, who is helped an how? Farmer's gain in Cash Market outweighs loss in Futures Elevator's gain in Futures Market ouweighs losss in Futures Elevator in Cash Market Bear Speculator