you are cattle feeder concerned abount rising corn (and feed ) cost . the march contract is trading at $ 4.29/bu. during the month of january and february , you expect to be able to buy corn at basis of$ -0.28/bu. you buy the march contract the look in price corn . when the time comes to unwind your hedge, the following prices prevail : $4.94/bu march futures and $4.69/bu cash price. what price did you ectually pay for corn? (a) $4.69/bu (b)$ 4.01/bu (C)$ 4.94/bu (d)$ 4.16/bu
you are cattle feeder concerned abount rising corn (and feed ) cost . the march contract is trading at $ 4.29/bu. during the month of january and february , you expect to be able to buy corn at basis of$ -0.28/bu. you buy the march contract the look in price corn . when the time comes to unwind your hedge, the following prices prevail : $4.94/bu march futures and $4.69/bu cash price. what price did you ectually pay for corn? (a) $4.69/bu (b)$ 4.01/bu (C)$ 4.94/bu (d)$ 4.16/bu
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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you are cattle feeder concerned abount rising corn (and feed ) cost . the march contract is trading at $ 4.29/bu. during the month of january and february , you expect to be able to buy corn at basis of$ -0.28/bu. you buy the march contract the look in price corn .
when the time comes to unwind your hedge, the following prices prevail : $4.94/bu march futures and $4.69/bu cash price.
what price did you ectually pay for corn?
(a) $4.69/bu
(b)$ 4.01/bu
(C)$ 4.94/bu
(d)$ 4.16/bu
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