You are a cow-calf operator and typically sell your calves after the first of the year in January. You like to lock in profit when you can by pricing the cattle ahead of time if possible. Futures market is at $179/cwt. B) Strategy: Buy a Jan 179 Put for $3.40/cwt Floor or Ceiling (Highlight) - Calculate your minimum price Strike Price: -Premium: +/- Basis: +10.00 minimum price C) Results: (assume basis ends at +$10 over, as predicted) Find the cash prices, the gain or loss from purchasing the put at each price level, and what the producer's net prices would be at each level. If Cash/futures expire at: Put gain or loss = Net price /160 /179 /200