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What are answers and why they are answers? What happens if a cash market price gains relative to a futures price over time? a A)
What are answers and why they are answers?
What happens if a cash market price gains relative to a futures price over time? a A) Basis strengthens and benefits the long hedger B) Basis strengthens and benefits the short hedger C) Basis weakens and benefits the short hedger D) Doesn't have an impact on basis If you estimate the local cash price will be 15 under the March futures price at the time you deliver your corn, the approximate net selling price you can lock in by selling a March futures contract at $5.50 is: A) $5.65 B) $5.60 C) $5.35 D) None of the above Step by Step Solution
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