Using the attached futures quotes (use the "Last" quote for the appropriate contract), answer the following: 1. What price would a feedlot operator located near Ogden, Utah plan to spend on corn he will be buying in the local cash market on March 1, 2024 if he hedges the corn on December 1, 2023 and the expected basis for March 1 is $0.12 over per bushel? 2. Assume the same buyer as in question 1 and that storage cost for corn between December 1, 2023 and March 1, 2024 is $0.15/bu. What would his net purchase price (cost) for the corn be if: a. He bought the physical corn on 12/1/23 in the cash market when the local cash price was $5.18 /bu.? b. He hedged (long position) the corn on 8/3/23 and then offsets the contract on 03/01/24 when local cash price is $5.33/bu. and the March Corn futures price is $5.23/bu.? c. He waited to purchase the corn on 03/01/23 when the basis was $0.10 over per bushel and the futures price was $5.18/bu.?

MONTH OPTIONS CHART LAST CHANGE PRIOR SETTLE OPEN HIGH LOW VOLUME UPDATED SEP 2023 ZCU3 OPT 481'6 -7'2 (-1.48%) 488'2 486'2 489'6 480'4 61,763 12:13:41 CT 03 Aug 2023 DEC 2023 ZCZ3 OPT 493'4 -7'0 (-1,404) 580' 4 499'9 502'6 493'2 110, 487 12:13:40 CT 03 Aug 2023 MAR 2024 OPT 507'0 -7'0 (-1.36%) 514'0 512'6 516 2 507'8 30, 106 12:13:38 CT ZCH4 03 Aug 2023 MAY 2024 ZCK4 OPT 515'0 -7'2 (-1.394 ) 522'2 522 2 524'8 515'0 10, 043 12:13:35 CT 03 Aug 2023 JUL 2024 OPT ZON4 519'6 -7'0 (-1.33%) 526'6 525'2 528 2 519'4 10,307 12:13:38 CT 03 Aug 2023 SEP 2024 ZCU4 OPT 510'4 -4'6 (-0,92%) 515'2 513'4 517'2 510'4 4, 264 12:13:27 CT 03 Aug 2023 DEC 2024 OPT 508' 6 -4'4 (-0.88%) 513 2 511'4 514'2 508'6 6, 042 12:13:28 CT ZCZ4 03 Aug 2023