900 4. Assume Earl Stubblefield harvests his wheat crop in June. The basis is weak...

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900 4. Assume Earl Stubblefield harvests his wheat crop in June. The basis is weak and thus it likely would pay the $0.25/bu. that it would cost to store. What net price would be received for each of the following situations? Assume hedging costs are S.02/bu. (3 points) Date Cash Dec Futures Basis June Nov 4.80 4.70 4.10 4.30 -0.25 4.05 basis -.70 - 40 Net Price June.cash Sell cash in June Storage hedge Store unhedged 4.10 4.13 4.05 - (4.30-25

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